Foreign Trade Versus Foreign Investment

Many large U.S. firms invest abroad instead of exporting. 

• 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.

Min. of two pages