Homework: Foreign Trade versus Foreign Investment
Many large U.S. firms invest abroad instead of exporting. Prior to beginning work on this homework, read James Gerber's (2017) Chapter 4 and Ed. Crooks' article, America: Riveting Prospects, and respond to the following components.
1) Compare and contrast foreign trade and foreign investment.
2) 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.
3) 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).
4) Analyze how foreign investment and production can contribute the U.S. economy when its transactions are not counted into GDP.
5) Explain whether you are in favor of foreign trade (exporting) or foreign investment (production outside the United States), and why.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.