difference between foreign trade and foreign investment? 3 points each
Foreign trade is the trade between different countries of the world. It consists of imports, exports . The inflow of goods in a country is called import trade whereas outflow of goods from a country is called export trade. Foreign Investment provides an inflow of foreign capital and funds and not goods
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when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs.
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FOREIGN TRADE : its the trade between diffrent countries on global grounds....that is Indias trade wid South Africa..is foreign trade...
FOREIGN INVESTMENT : its juss the investment done by MNCs in ny othrr country....say as NOKIA invests in our country its foreign investment...
investment hs many facets...it cn be establishment of industries....buyinn land 4 factories..etc..nyhw both of them ,in most cases..increase oue economic growth...:)))
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Foriegn Trade includes buying and selling of good under an aggreement
while Foriegn Investment only deals with investments in shares of properties on a foriegn land.
when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs.
FOREIGN TRADE : its the trade between diffrent countries on global grounds....that is Indias trade wid South Africa..is foreign trade...
FOREIGN INVESTMENT : its juss the investment done by MNCs in ny othrr country....say as NOKIA invests in our country its foreign investment...
investment hs many facets...it cn be establishment of industries....buyinn land 4 factories..etc..nyhw both of them ,in most cases..increase oue economic growth...:)))
HOPE THIS HELPS!!!PLS GV THUMBS UP!!!!:):)
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*under this trade goods and services travel from one country to another.
*it results in connecting the markets of integration of markets in different countries
foreign investments
*under foreign investment a MNC or a country invests in another country.
* it promotes process of industrialisation
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A developing economy lacks domestic capital. So it in vies and encourages flow of foreign capital into the country. Such foreign capital is known as foreign investment.
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-Foreign investment is the in flow of capital form another country to our country.
-Foreign investment is just limited ot the invard flow of capita, were as foreign trade is about flow of goods
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2.MNC's also prform foregin tread.
3.it also part of globlization.
Foregin investment=1.investment in forgine country a countey or a company for earn money.
2. Set up factorise in other country.
3.This process is fone because of cheap labour and lade of the country.
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