Assertion (A) : International business has grown in more recent years at a faster pace than global production. Reason (R) : Growth through trade has increased, but growth through foreign direct investment has not. Codes :
(A) is correct but (R) is incorrect
Assertion (A): Over recent decades world trade and foreign direct investment have grown faster than world output, so the share of production that crosses borders has risen. Daniels' International Business makes exactly this point. (A) is correct.
Reason (R): Growth has come through both channels. Trade has expanded, and FDI flows and stocks have also grown strongly, often faster than trade itself. The claim that FDI has not grown is false. (R) is incorrect.
Because (R) is false, the question of whether it explains (A) does not arise.
Hence, (A) is correct but (R) is incorrect.
Similar Questions
Globalization is the term used to describe process of removal of restriction on which one of the following ?
In the context of globalization, ‘Levitt Thesis’ means
Indicate the right sequence of the stages of internationalization :
(i) Multinational Company
(ii) Global Company
(iii) Transnational Company
(iv) International Company
Codes :
Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows took place to USA.
Select the correct code :
Codes :
Which of the following is not ensured to the consumer in the globalization ?
Important Questions from Globalization and its drivers
Match List I with List II.
List I (A.T. Kearney Globalization Index)
List II (Variables)
A.
Economic Integration I.
International Tourism and Travel B.
Personal Integration II.
Internet users
C.
Technological Integration
III.
Foreign Direct Investment
D.
Political Integration
IV.
Ratification and multilateral treaties
Choose the correct answer from the options given below:Globalization is the term used to describe process of removal of restriction on which one of the following ?
In the context of globalization, ‘Levitt Thesis’ means
Indicate the right sequence of the stages of internationalization :
(i) Multinational Company
(ii) Global Company
(iii) Transnational Company
(iv) International Company
Codes :
Assertion (A) : The USA remains the world’s largest FDI recipient country.
Reason (R) : The global economic crisis of 2009, causes a reduction of global FDI flows took place to USA.
Select the correct code :
Codes :
