Discussion Post: The Foreign Trade versus Foreign Investment
Many large U.S. firms invest abroad instead of exporting. Prior to beginning work on this assignment, read James Gerber's (2017) Chapter 4 and Ed. Crooks' article, America: Riveting Prospects and respond to the following components.
• 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.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.