Does foreign debt refer to the foreign investment a nation recieves to finance their current account deficit? Can it refer to anything else. thanks.
Answer:
Foreign investment can be divided into debt and equity. If a foreigner buys a local firm, then it is counted as equity. If a foreigner lends money to a local firm or to a local individual, then it is consdered debt. Debt is a contract that needs to be paid back. Equity is ownership and there is no guarantee of a rate of return on the investment.
The answers post by the user, for information only, FunQA.com does not guarantee the right.
More Questions and Answers:
10.The central bank decided to implement a contractionary policy action.?
Why do we always promote money over social well being in this country ??
What is not true of the Monopolistically Competitive firm in the long run?
Why is scarcity a universal problem?
Price Elasticity question?
How does the credit or money market hedge work?
Why are so many countries compete to host the Olympic Games? While some citizen boycott to go against it?
Diminishing Marginal utility question?
Who are more required for india today --- engineers or beaurocrats or politicians?
EUR to dollar ratio?