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Which is growing at a faster rate, foreign direct investment by MNCs or international trade?Group of answer choicesSince they are linked, they grow at the same rate.International tradenone of the optionsFDI by MNCs

Question

Which is growing at a faster rate, foreign direct investment by MNCs or international trade?Group of answer choicesSince they are linked, they grow at the same rate.International tradenone of the optionsFDI by MNCs

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Solution

The answer to this question can vary depending on the time period and specific countries or regions being considered. However, in general, it is not accurate to say that foreign direct investment (FDI) by multinational corporations (MNCs) and international trade always grow at the same rate. They are indeed linked, but various factors can cause one to grow faster than the other.

For instance, policies encouraging or discouraging foreign investment, changes in trade barriers, economic stability, and market potential can all impact the rate of growth of FDI. Similarly, international trade can be influenced by factors such as exchange rates, global economic conditions, and trade agreements.

Therefore, without specific data, it is not possible to definitively say whether FDI by MNCs or international trade is growing at a faster rate. It would be best to refer to recent economic data or studies for the most accurate answer.

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