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- If a country is running a government budget surplus, why is (T - G) on the left side of the saving-investment identity?What is the difference between foreign direct investment and portfolio investment?Which of the following best describes foreign direct investment (FDI)?a.ofAmouge, an Omani company's direct investment in production and/or service in Omanb. None of the choices mentioned here rightly explain the concept of FDIThe purchases of foreign stocks by the stockholders of Omanteld. A Kuwaiti company using an intermediary when making foreign investments in Ghanae. (The purchases Omani stocks and bonds by citizens of Saudi Arabia
- (a) Describe the difference between foreign direct investment and foreign portfolio investment. (b) Discuss how changes in local real interest rates and foreign interest rates impact the decision to carry out investment by (i) foreigners and (ii) locals.Explain the difference between foreign direct investment (FDI) and foreign portfolio investment (FPI)? Explain which one is more useful to accelerate economic growth of home country.In an economy:- Gross domestic capital formation = $70 million Depreciation = $35 million We have to calculate the value of net domestic capital formation