Why Has FDI Grown More Rapidly Than World Trade

Multiple Choice

Why has FDI grown more rapidly than world trade?

A) Decline in trade barriers has made the fear of protectionist pressures redundant.
B) Executives of business firms see FDI as a way of circumventing future trade barriers.
C) There has been a general shift toward radical and totalitarian political institutions.
D) Privatization has made developing nations less attractive for MNEs.