Question

Why has FDI grown more rapidly than world trade? Multiple Choice The decline in trade barriers has erased the fear of protectionist pressures. Executives of business firms see FDI as a way of circumventing future trade barriers. There has been a general shift toward radical and totalitarian political institutions. Privatization has made developing nations less attractive for multinational enterprises. There has been a general shift toward centrally planned command economies.

Answer 1

Answer:

Executives of business firms see FDI as a way of circumventing future trade barriers.                            

Explanation:

A foreign direct investment refers to the  investment in commercial interests based in some other nation made by a company or person in one nation. In particular, FDI happens when an entity develops international business activities or obtains overseas business resources within a foreign corporation.

This method of business has gained popularity over the years as trade barriers have been loosens up by nations seeing their growth in economy and living standards.