POLSCI 160 Chapter Notes - Chapter Chapter 8 Vocab: Foreign Direct Investment, Operation World, Business Cycle
17 Oct 2017
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Portfolio investment: investment in a foreign country via the purchase of stocks (equities), bonds, or other financial instruments. Portfolio investors do not exercise managerial control of the foreign operation. Sovereign lending: loans from private financial institutions in one country to sovereign governments in other countries. Foreign direct investment (fdi): investment in a foreign country via the acquisition of a local facility or the establishment of a new facility. Investors maintain managerial control of the foreign operation. World bank: an important international institution that provides loans at below-market interest rates to developing countries, typically to enable them to carry out development projects. Recession: a sharp slowdown in the rate of economic growth and economic activity. Depression: a severe downturn in the business cycle, typically associated with a major decline in economic activity, production, and investment; a severe contraction of credit; and sustained high unemployment. Default: to fail to make payments on a debt.
