Question

the difference between trade and FDI

Answer 1

if we simply talk about the trade,it is the exchange of goods and services.

If done domestically then it is called domestic trade and if it it is done at international level then it is called international trade in terms of export and import

If any country sends its items to the other country it called export.

If any country demands goods and services from other countries then it is called import.

it creates a good opportunity for the producer to cover the market .

Foreign direct investment is an investment done when a firm or individual from one country to invest business in another country.

it happens when a home business acquires asset in the foreign company .

the best example can be Apple operating in the China and India