Exporting is the dominant form of international business activity. In 2013, the world’s exports of goods and services totalled $24.5 trillion. Foreign Direct Investments (FDI) totalled more than $20 trillion. Are international trade and FDI substitutes for one another, or do they complement one another? Explain.
The bulk of FDI occurs through acquisitions. Why has this mode of entry been so popular despite the complexities and high financial risk involved?