Which of the following statements is true regarding foreign direct investment?

Which of the following statements is true regarding foreign direct investment?



A. The flow of FDI refers to the total accumulated value of foreign-owned assets at a given time.


B. FDI has grown more rapidly than world trade and world output.


C. The general shift toward democratic political institutions has discouraged FDI.


D. Generally, free market economies oppose FDI.


E. The globalization of the world economy is having a negative effect on the volume of FDI.



Answer: B. FDI has grown more rapidly than world trade and world output


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