Why has FDI grown more rapidly than world trade? A. The decline in tr

QUESTION

Why has FDI grown more rapidly than world trade?

A. The decline in trade barriers has erased the fear of protectionist pressures.

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 multinational enterprises.

E. There has been a general shift toward centrally planned command economies.

ANSWER

B