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Distinguish between foreign trade and foreign …

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Distinguish between foreign trade and foreign investment

    • Posted by Surbhi Ray 3 years, 9 months ago

    CBSE > Class 10 > Social Science
    • 1 answers

    Sia ? 3 years, 9 months ago

    BASIS FOR COMPARISON FOREIGN TRADE FOREIGN INVESTMENT
    Meaning Foreign trade implies the trade of goods, services and capital between two countries of the world. Foreign investment refers to an investment made in a company from a source outside the country.
    Need Resource endowment Capital requirement
    Result Integration of markets of different countries. Additional investment in the form of capital, technology and other resources.
    Advantage It creates an opportunity for the producers to cover the international markets. It brings long-term capital to the company.
    Objective To earn profit and excel global market. To generate returns in long term.

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