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Unit 4 Ch 4 : Globalization and the Indian Economy — Social Studies STD 10 — Question

CBSE BoardEnglish MediumSTD 10Social StudiesUnit 4 Ch 4 : Globalization and the Indian Economy5 Marks
Question
Distinguish between foreign trade and foreign investment.
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Answer

BASIS FOR COMPARISON
FOREIGN TRADE
FOREIGN INVESTMENT
Meaning
Foreign trade implies the trade of goods, services and capital between two countries of the world.
Foreign investment refers to an investment made in a company from a source outside the country.
Need
Resource endowment
Capital requirement
Result
Integration of markets of different countries.
Additional investment in the form of capital, technology and other resources.
Advantage
It creates an opportunity for the producers to cover the international markets.
It brings long-term capital to the company.
Objective
To earn profit and excel global market.
To generate returns in long term.

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