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Foreign saving is used for domestic investment when foreigners engage in:

1. foreign direct investment.

2. foreign portfolio investment.

3. either foreign direct investment or foreign portfolio investment.

4. None of the above is correct. 

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Sonal Bahl
Sonal BahlLv10
21 Mar 2021

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Related questions

If net exports are a negative number for a particular year, then:

1. the value of firms' inventories declined over the course of the year.

2. consumption exceeded the sum of investment and government purchases during the year.

3. the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.

4. the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.

Consider the following data:

Private Sector Saving = 550

Net Taxes= 175

Government Purchases = 300

Investment = 650

Imports =500

Exports =200

Change in International Reserves= 0

Please calculate the following:

1. Budget Surplus

2. National Saving

3. Current Account Deficit

4. Net Inflow of Foreign-Generated Income

5. Net Inflow of Foreign Financial Capital

Please don't answer this question if you aren't macroeconomic expert:

The question is:

1. When looking for indicator of investment in specific country, which is more powerful and influencial; Gross Capital formation of foreign direct investments and why?

2. What is the difference between both of them; please try to simplify the answer.

3. When I can use Gross capital formation as indictor of investment versus the foreign direct invesmtment and vice versa.

Thanks

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