help with question (1 Viewer)

[miffytoki]

i'm in the midst of revising...and i have a quick question

what are the two types of foreign liabilities and what are the differences?

 

[Demandred]

Net foreign debt and net foriegn equity. Foreign debt is basically debt in a form of money, foreign equity is debt in a form of capital. Net foreign equity is a more preferred form of debt as it can add to economic growth and development while net foreign debt does nothing as it is simply just debt.

 

[aditya]

yeh, i think u mean investment

 

[Demandred]

investment = capital . I hope.

 

[ToO LaZy ^*]

that's correct.