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Foreign Trade and Foreign Income
Foreign Trade and Foreign Income
INVESTMENT?
Next to commodity imports and exports, no other aspect
of foreign trade exerts a significant impact upon a nation’s
economy, particularly in those countries belonging to the
underdeveloped category, than foreign investments.
TWO IMPORTANT REASON:
The recognition
concerning the role of
foreign investment in
promoting trade relations
among countries.
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Portfolio or indirect investments, consist of foreign stocks and
bonds purchased by individuals investors, insurance companies,
investment trust, financial institutions and others. Portfolio type of
investment carry no commercial control whatsoever of the foreign
enterprise and are intended for income only. A good example of
portfolio investment is that of loans obtained from abroad.
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