Economics
Distinguish between foreign trade and foreign investment.
Global & Ind Econ
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Answer
| Foreign trade | Foreign investment |
|---|---|
| It involves the exchange of goods and services between countries in the international market. | It refers to the inflow of capital into a country from individuals, companies, or governments of another country. |
| It consists of imports and exports. | It consists of buying land, acquiring stake of a company or acquiring a whole company. |
| It results in competition between companies and lower prices for consumers. | It results in increased economic growth and improved living standards |
| Foreign trade results in connecting the markets or integration of markets in different countries. | Foreign investment generates employment opportunities and improves a country’s Gross Domestic Product |
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