Question

what is the difference between foreign investment and foreign trade?

Answer 1

S.No	Foreign investment	Foreign trade
1.	Money that is spent to buy assets such as land, building, machines, etc is called investment and investment by MNCs is called foreign investment	Foreign trade creates a trade link with other countries and it creates an opportunity for the producers to reach beyond domestic markets
2.	Investment is made with the objective of earning profits	Goods travel from one place to another
3.	MNCs set up production jointly with some local companies of the countries in which they are making investment	Choices of goods in the market increases and prices of similar goods tend to become equal
4.	It is a benefit for local companies as they get additional investment from MNCs and new technology for production	Foreign trade integrates two markets in different countries