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    JWOOD66's Avatar
    JWOOD66 Posts: 1, Reputation: 1
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    #1

    Apr 15, 2015, 04:28 AM
    Is foreign money coming into a country investment or import or both?
    For example, if foreign companies are buying/Taking over UK companies in Aggregate Demand would this been seen as investment, importing or both?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Apr 17, 2015, 03:30 PM
    Capital inflows are an investment but the result in the country has a negative impact on international debt, in other words they owe more money in the same way that imports create a debt. You need to split long term and short term impacts. Capital outflows are of greater concern than capital inflows
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