Unlike the theory of international trade or the theory of international portfolio investment,
A)we do not have a well-developed,comprehensive theory of FDI.
B)the comprehensive theory of FDI focuses on mean-variance efficiency.
C)the comprehensive theory of FDI is an arbitrage argument,like interest rate parity.
D)none of the options

Question

Quizplus · Accepted Answer

While there are well-developed and comprehensive theories for international trade and international portfolio investment, there is not a similarly comprehensive theory for foreign direct investment (FDI). FDI is a complex and diverse phenomenon that can be influenced by a variety of factors, making it difficult to create an all-encompassing theory.

Unlike the Theory of International Trade or the Theory of International