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Export and Import of Capital as Forms of Foreign Economic Activity Lecture # 15
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What is capital? In economics, capital goods, real capital, or capital assets are already- produced durable goods or any non- financial assets that is used in production of goods or services.
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Manufactured or physical capital is distinct from land in that capital must itself be produced by human labor before it can be a factor of production.
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Capital export The flow of capital out of one country into overseas direct investment or loans, mainly in the form of short-term credit. Direct investments are usually made in shares of trade, industrial, and banking sectors.
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Concerning the export of capital The exportation of capital is hardly new in the modern economy. Now there is a ring of truth to what Roberts is saying. Capital create wealth and the creation of capital is a good thing in economics.
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Export of working capital EWC allows exporters to purchase the goods and services they need to support their export sales. More specifically, EWC facilities extended by commercial lenders provide a means for small and medium-sized enterprises
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Import of capital A country or territory whose value of imported goods is higher than its value of exported goods over a given period of time.
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US as a capital importer US the major importer of capital, while the major exporters of capital are China, Germany, and Japan.
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