Question

differentiate between foreign trade and foreign investment

Answer 1

The critical difference between foreign trade and foreign direct investment is that foreign trade is the exchange of goods and services between domestic sectors of different countries, whileforeign direct investment is theinvestment of capital by individuals (or corporations) residing in one country in enterprises ...

Answer 2

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.

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