Chapter 4

NCERT
Class 10
Economics
Solutions
2. Distinguish between foreign trade and foreign investment.

Question:

Distinguish between foreign trade and foreign investment.

Answer:

Exchange of goods and services in two or more countries is called foreign trade. This includes imports and exports (including re-exports). Foreign investment means capital investment made by a country or a multinational corporation on industrial or other services such as land, buildings, machines and other equipment in one or several countries. Its objective is to get more dividends.

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