Many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with well-established industries in developed countries. This demonstrates the

Multiple Choice

• economic development argument.

• comparative advantage theory.

• national security argument.

• infant industry argument.

• mixed economy theory

Renata asked her assistant to determine the amount of foreign direct investment the company had taken over the past year. Renata is interested in the

Multiple Choice

• state of GNI.

• flow of FDI.

• flow of GDP.

• stock of FDI.

• status of JIT.