Both economic theory and empirical studies support the notion that foreign direct investment is conducted in anticipation of future profits.

Name: Both economic theory and empirical studies support the notion that foreign direct investment is conducted in anticipation of future profits.
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Question

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Economic theory suggests that firms invest in foreign countries with the expectation of earning higher profits in the future. Empirical studies have also found evidence supporting this idea.

Both Economic Theory and Empirical Studies Support the Notion That