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Yakvenalex [24]
10 months ago
5

what is the connection, if any, between comparative advantage (ca) and foreign direct investment (fdi)?

Business
1 answer:
Yuliya22 [10]10 months ago
6 0

CA has nothing to do with FDI. Countries often engage in FDI in industries where the country they invest in has a comparative disadvantage.

When a nation's businesses make investments abroad, it promotes comparative advantage CA in the same sector at home.

What is comparative advantage -

The ability to create goods and services at a lower opportunity cost, not necessarily at a higher volume or quality, is referred to as having a comparative advantage.

What is FDI-

An entity based in another country makes an investment in the form of controlling ownership in a company in another country. This investment is known as a foreign direct investment (FDI).

Learn more about CA and FDI here:

brainly.com/question/16412026

#SPJ4

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