Final answer:
The assertion that service-oriented firms in advanced economies account for a lesser share of FDI compared to manufacturing companies is false. Service sectors dramatically contribute to the GDP in developed countries and are a major draw for FDI.
Step-by-step explanation:
The statement suggesting that in advanced economies, firms that engage in services such as lodging and retailing account for a much lesser share of Foreign Direct Investment (FDI) than firms that manufacture products is false. Service sectors such as retail, lodging, telecommunications, and finance comprise a significant portion of the economy in advanced countries. It's important to note that the tertiary and quaternary sectors, which are often referred to collectively as the service sector, are substantial contributors to GDP in developed economies like the United States, where they make up more than three-quarters of the GDP. Hence, they play an essential role in attracting FDI as well.
The data from the US Bureau of Economic Analysis substantiates this claim by showing strong growth rates in sectors that do not necessarily involve manufacturing physical goods, such as retail, which is a clear indicator of their economic importance and potential to attract FDI. Furthermore, with the majority of the workforce in advanced economies like the United States employed in the tertiary sector, reflecting on the service industry's prominence, it is evident that these segments draw significant FDI.