1.

Distinguish between foreign trade and foreign investment.

Answer»
Foreign InvestmentForeign Trade
 The money that MNCs spent to buy assets such as land, building, machines and other equipment is ‘foreign investment’.The foreign trade of a country consists of both exports and imports of goods and services.
It is made with the hope that it will earn profits.Foreign trade creates an opportunity for the producers to reach beyond the domestic markets.
Local companies are joined by MNCs get investment and technology.For buyers, foreign trade expands the choice of goods beyond what is domestically produced.
These have enormous wealth and exercise power.It results in connecting the markets or integration of markets in different countries.

Foreign investment is the money spent by the MNC's  in the country to buy assets such as land, building, machinery etc ,in the hope that these assets would return great profit in the future.
                         whereas

 Foreign trade, is the trade that goes beyond the national domestic markets and is done at an international level between different countries.


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