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Alchen [17]
4 years ago
10

What is the connection, if any, between comparative advantage (CA) and foreign direct investment (FDI)? Nothing. CA has nothing

to do with FDI. Countries often engage in FDI in industries where the country they invest in has a comparative disadvantage. Countries often engage in FDI in industries where the country they invest in has a comparative advantage. When a country's firms invest abroad, this helps to create CA in the same industry at home.
Business
1 answer:
algol134 years ago
3 0

Answer: When a country's firm invests abroad, this helps to create CA in the same industry at home.

Explanation:

Comparative advantage is an economic term which refers to the ability of an economy to produce goods and services at lower opportunity cost than its trade partners.

The connection between comparative advantage (CA) and foreign direct investment (FDI) is that when a country's firm invests abroad, it helps to create comparative advantage in the same industry at home. Since a two-sided remote direct venture will have an effect on the correspondence of the relatively favorable position among the host and the source countries.

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“When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which is known as a discount bond, its current yield and YTM are higher than the coupon rate. Only on occasions when a bond sells for its exact par value are all three rates identical” (Bloomenthal, 2020).

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