Portfolio investment
investment in foreign country via stocks, bonds, other financial instruments. Do not exercise material control of the foreign operation.
sovereign lending
loans from private financial institutions in one country to sovereign governments of another.
Foreign direct investment FDI
Investment in a foreign country via the acquisition of a local facility or the establishment of a new facility. Direct 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 activity
Depression
a severe downturn in the business cycle, typically associated with major declines in economic activity, production and investment; a severe contraction of credit; and sustained high unemployment.
Austerity
the application of policies to reduce consumption typically by cutting government spending, raising taxes, and restricting wages.
Default
to fail to make payments on a debt
Bank for International Settlements
one of the older international financial organizations created in 1930. Its members included the world’s principal central banks, and under its auspices they attempt to cooperate in the financial realm.
International Monetary Funds IMF
A major international economic institution established in 1944, to manage international monetary relations. It has gradually reoriented itself itself to focus on the international financial system, especially debt and currency crises.
Multinational Corporation MNC
an enterprise that operates in a numberof countries with production or service facilities outside its country of origin.
Global Supply Chains
a network of customers and suppliers involved in the production and distribution of a product. Parts of it may be inside a multinational corporation; parts may also involve links between corporations.
Bilateral Investment treaty
An argument between two countries about the investment across borders. include provisions to protect an investment from government discrimination or expropriation without compensation, as well as ways to resolve disputes.
