Flows of FDI are substantially larger than international trade in merchandise.

Question

Quizplus · Accepted Answer

International trade in merchandise typically involves larger volumes and values compared to flows of Foreign Direct Investment (FDI). FDI refers to investments made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country. In contrast, international trade in merchandise involves the exchange of goods across borders, which historically has shown higher total values annually than FDI flows.

Flows of FDI Are Substantially Larger Than International Trade in Merchandise