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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2450 |
Essay's paper body
It can own facilities through which it makes products and/or sell services directly in another country (foreign direct investment). A company can also lend its name and/or technology to another company to produce a good or service (through some sort of a licensing agreement, for example).
Foreign direct investment and licensing agreements often generate the need for more imports, and thus trade...
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Investing in foreign businesses through purchasing the stock of a company is called portfolio investment, and is a form of indirect investment. Indirect investment may have no direct impact on trade and do little, if anything, to support development (e.g. if it tends to be speculative in nature). Trade and investment can have a wide range of effects on development depending on a critical set of factors, including: the durability and stability of trade and/or investment; their effects on employment, income, natural resources and cultures; and, if and how profits are re-invested...
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