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