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Why is a current account surplus equivalent to foreign investment?
Wiki User
∙ 12y ago
A country where income is greater than spending, has saving greater than investment, and a current account surplus. The excess of income over spending must be balanced by foreign investment, so there will be a financial account deficit to match the current account surplus.
Wiki User
∙ 12y ago
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What have you learned about foreign direct investment and the political economy of trade?
foreign direct investment is that investment in which a foreign country invests in a host country.
Who need foreign investment?
All countries require foreign investment in order to be competitive in many markets including technology. Foreign investment allows for free trade.
Is there any difference between fdi and direct investment?
If the direct investment is foreign, then no, since FDI stands for 'foreign direct investment'.
What does direct foreign investment do?
What does direct foreign investments do?
Is china open to foreign trade and investment?
Yes, Chinese government is very much encouraging foreign direct investment.
3 main components of the capital account?
Debt flows, Foreign Direct Investment Flows and Portfolio Investment Flows
What have you learned about foreign direct investment and the political economy of trade?
foreign direct investment is that investment in which a foreign country invests in a host country.
What does the government department of CFIUS do?
The Committee on Foreign Investment in the United States is part of the Department of the Treasury. CFIUS oversees and encourages foreign trade. They also take into account the security risks of foreign transactions.
Analysis of the types of terms of trade?
the current account and the current account balance are within the terms of trade. if you there is money entering the money supply from a foreign market or someone who has not yet deposited the money into a banking system, that will be a current account. it will be a current account balance, composed of capital account, trade account, and account deficit. this means, if the money is leaving the country.
What is the effect of corporate governance on foreign investment?
What is the effect of corporate governance on foreign investment?
Distinguish between foreign direct investment and portfolio investment?
Foreign direct investment is the provision of capital into a company or project by a financier who is from a foreign country. In portfolio investment, anyone can invest in the portfolio, whether or not he is from a local company or a foreign company.
Who need foreign investment?
All countries require foreign investment in order to be competitive in many markets including technology. Foreign investment allows for free trade.
What is a current issue involving foreign exchange?
A current issue involving foreign exchange is the impact of fluctuating exchange rates on international trade and investment. Fluctuations in exchange rates can affect the cost of imports and exports, making it challenging for businesses to plan and forecast their financials. Additionally, exchange rate volatility can create uncertainties for investors, affecting their decisions regarding foreign investment.
What is the most popular foreign investment made?
A foreign investment is an investment made by a company or entity based on one country, into a company based in another country. The most popular foreign investment made is China.
Is there any difference between fdi and direct investment?
If the direct investment is foreign, then no, since FDI stands for 'foreign direct investment'.
When was Vanuatu Foreign Investment Board created?
Vanuatu Foreign Investment Board was created in 1998.
If you are one of the members formed to revice current foreign investment policy of Nepal what suggestions will you give for the revision of current foreign investment policy of Nepal?
Too broad of a question IMHO but there are not a whole lot of safeguards against foreign investors - reaulations are not transparent, rules are too prohibitive - it needs a major overall - I say have a Nepali deliagte tavel to China or Taiwan and learn from them as best as you can.
