Which of the following global trends has been marked by an increase in Foreign Direct Investments (FDIs) and reverse innovations?

The Deal multinational corporation practices an ethnocentric international business strategy. However, several global trends may necessitate a change in the corporation’s strategy.

Which of the following global trends has been marked by an increase in Foreign Direct Investments (FDIs) and reverse innovations?
A . An upsurge in the economic power of developed economies.
B . A change in influence from developed economies to emerging economies.
C . The vast importance of technology over geography and population.
D . The impact of a global pandemic and recession.

View Answer

Answer: B

Explanation:

Increases in FDIs and reverse innovations (or trickle-up innovation) are indicative of a shift in influence from developed economies to emerging economies. FDI inflow into developing economies now exceeds its flow into developed economies. Reverse innovations are those that start in emerging economies and spread to developed economies. Term to Note: Demographic Dichotomy means the workforce in emerging economies is becoming disproportionately young, while the workforce in developed economies is rapidly aging.