Answer :
CA has nothing to do with FDI. Countries often engage in FDI in industries where the country they invest in has a comparative disadvantage.
When a nation's businesses make investments abroad, it promotes comparative advantage CA in the same sector at home.
What is comparative advantage -
The ability to create goods and services at a lower opportunity cost, not necessarily at a higher volume or quality, is referred to as having a comparative advantage.
What is FDI-
An entity based in another country makes an investment in the form of controlling ownership in a company in another country. This investment is known as a foreign direct investment (FDI).
Learn more about CA and FDI here:
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