Foreign Trade vs Foreign Investment
Many large U.S. firms invest abroad instead of exporting. Prior to beginning work on this assignment, read James Gerber’s (2017) Chapter 4 and Ed. Crooks’ article, America: Riveting Prospects (Links to an external site.), and respond to the following components.
- Compare and contrast foreign trade and foreign investment.
- Evaluate why many U.S. companies do not want to participate in exporting and rather build their plants and factories in foreign countries to produce there.
- Assess the advantages and disadvantages of this type of foreign investment (i.e., building their plants and factories and producing their products in foreign countries).
- Analyze how foreign investment and production can contribute the U.S. economy when its transactions are not counted into GDP.
- Explain whether you are in favor of foreign trade (exporting) or foreign investment (production outside the United States), and why.
Must be 3-4 double-spaced pages in length (not including title and references pages) and formatted according to the Ashford Writing Center (Links to an external site.)’s APA Style (Links to an external site.)