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International Trade Operations - Essay Example
Pages 4 (1004 words)
International Trade Operations Part 1 Abstract The paper intends to provide Mr. Swanson a brief understanding about the various potential opportunities for investment in the international marketplace. Foreign market investment has become a favorable option for investment in recent times…
It may be long-term as well as short-term capital. It also refers to the inflows to acquire management power. Foreign investment is a measure of ownership of different assets such as buildings, factories and mines among others. Apart from these, economic globalization can be said to occur with the increase of foreign investment. Mainly, there are two types of foreign investment i.e. inward foreign investment and outward foreign investment. Foreign investment creates confidence among the investors into markets even in difficult situations and times (The UC Atlas of Global Inequality, n.d.). The paper intends to provide an understanding of foreign investment, portfolio diversification, reasons to invest internationally, risks involved and investment mediums. Foreign Investment Foreign investment aims at developing attention by a resident entity of an economy (known as ‘direct investor’) in a unit resident of the other economy. The association in between the direct investor and the direct investment should last for a longer phase of time. Direct investment includes the initial transaction and the capital transaction and builds a healthy relationship between them. It is the type of investment that is made to acquire an effective control over the enterprise. ...
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