It provides a remarkable example of why it is so important for all educated citizens to be aware of what has happened in the development of a global economy over the past two decades. Trade in services has been an area of rapid growth in recent years. It includes banking, insurance, hotels, consulting, travel, and transport. Portfolio investment is financial investment without management control for a financial return. Portfolio investment may be purchase of debt or equity.
Direct investment is investment which includes management control of a venture.
It is direct investment when a company decides to build a factory for its own operation in a foreign country. Ask your local chamber of commerce for the names of companies in your community which engage in international trade. Visit one of these and ask what benefits they receive from their international activities. Go to your local automobile dealer and ask to see a car that is made of one hundred percent American parts. We will not be able to conduct this activity unless a minimum of five students are willing to participate.