The prominence of MNEs suggests that: A. we must substantially amend our theory of international trade. B. we must develop a new theory of international trade. C. we can continue to use our existing theory of international trade as it is. D. none of our models can correctly explain their trade and investment behavior.

Question

Kiersten Cooke

Business

29 July, 16:21

The prominence of MNEs suggests that: A. we must substantially amend our theory of international trade. B. we must develop a new theory of international trade. C. we can continue to use our existing theory of international trade as it is. D. none of our models can correctly explain their trade and investment behavior.

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Answers (1)

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Moriah Costa · Answer 1

The prominence of MNEs suggests that none of our models can correctly explain their trade and investment behaviour.

Explanation:

The importance of MNEs implies that neither of our models can clarify their trading and investing behaviour properly. Since MNEs know that they are opposed to any additional policy, MNEs employ different business methods, which are difficult to explain by any particular technique. It is easy to say that MNEs work according to rules and scenarios.

MNEs are strong economic entities with the top 500 MNEs owning most patented technology in the world and controlling close to 30% of global GDP in 2012 and are characterised as companies holding assets or workers in more than one region.