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international trade
describes the exchange of products (merchandise) and services (intangibles) across national borders. -
exporting
the sale of products or services to customers located abroad from a base in the home country or a third country -
international investment
refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production; they include capital, technology, managerial talent, and manufacturing infrastructure. Trade implies that products and services cross national borders. By contrast, investment implies that the firm itself crosses borders to secure ownership of assets located abroad. -
international portfolio investment
refers to the passive ownership of foreign securities such as stocks and bonds to gain financial returns. It does not entail active management or control over these assets. The foreign investor has a relatively short-term interest in the ownership of these assets.