ECON102 Lecture Notes - Lecture 31: Bulgarian Lev, Loanable Funds, Demand Curve

• School: University of Alberta
• Department: Economics
• Course: ECON102
• Professor: Andrew Wong

Document Summary

Econ 102 lecture 31 fdi and exchange rates. Imports and exports are most visible and straighorward aspects of interna2onal economics. Countries interact in other ways as well, including through investment. Foreign direct investment (fdi) refers to when a rm runs part of its opera9on abroad or invests in another company abroad. Foreign poryolio investment is the investment funded by foreign sources that is operated domes2cally. In other words it"s foreign money in domes2c businesses. How much money leaves canada minus how much foreign money comes in. For a long 2me canada"s porolio and direct investments were stable and low. However, the rst major spike we say in porolio investment was during the tech bubble. Then the opposite e ect happened when the prices of resources fell drama2cally around (from chapter 17. pptx , slide 7) A country can sustain large de cits by sending out more capital than it receives. The balance of payments iden2ty states that nx = nco.