Question

difference b/w foreing trade And foreign investment in five points​

Answer 1

The answer is as follows

Explanation:

With the effect of globalization, the form of the markets has been changed all around the world, as well as it has also changed the way in which business is carried out in the past years. One of the major revolutions, as a part of globalization, is the foreign trade that implies the buying and selling of goods and services, in different countries of the world.

Next, there is one more drastic change as a result of globalization, i.e. foreign investment, wherein the individuals and companies invest their capital in the companies headquartered in another nation.

Both foreign trade and foreign investment brings external capital to the country which triggers the growth of the nation. Let’s take a look at the given article, to understand the difference between foreign trade and foreign investment.

Hope it helps you....... :)

Answer 2

Answer:

1.

Exchange of goods and services across the national borders of the country is known as foreign trade. On the contrary, Foreign investment implies the type of investment that a company or individual from a country makes, in the equity of the company located in another country.

2.Every country does not possess all the resources, and that is why, foreign trade is required, to fulfil the demand for the resources which are deficient in a country. Conversely, foreign investment tends to fulfil the capital requirement of the company, from the source outside the country.

3.Foreign trade connects the markets of different countries of the world. In contrast, foreign investment brings additional investment to the company in the form of money, technology and other resources.

4.Foreign trade creates a good opportunity for the domestic producers to capture global markets and increase their overall reach. As against, foreign investment tends to bring long-term capital in the company and that too in foreign currency.

5.The primary objective of foreign trade is to earn a profit and create an impression in the international market. Unlike, a foreign investment which is made with an objective to generate returns in the long term and have an ownership stake in the company based in another nation