O Countries often engage in FDI in industries where the country they invest in has a comparative advantage. O When a country's firms invest abroad, this helps to create CA in the same industry in the country where they undertake the inve O When a country's firms invest abroad, this helps to create CA in the same industry at home. O CA has nothing to do with FDI.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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What is the connection, if any, between comparative advantage (CA) and foreign direct investment (FDI)?
O Countries often engage in FDI in industries where the country they invest in has a comparative advantage.
O When a country's firms invest abroad, this helps to create CA in the same industry in the country where they undertake the investment.
O When a country's firms invest abroad, this helps to create CA in the same industry at home.
O CA has nothing to do with FDI.
Transcribed Image Text:What is the connection, if any, between comparative advantage (CA) and foreign direct investment (FDI)? O Countries often engage in FDI in industries where the country they invest in has a comparative advantage. O When a country's firms invest abroad, this helps to create CA in the same industry in the country where they undertake the investment. O When a country's firms invest abroad, this helps to create CA in the same industry at home. O CA has nothing to do with FDI.
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