Net Foreign Investment

Let’s say Japan is investing a gazillion-and-one yen overseas...and foreign countries are investing one-gazillion yen in Japan. Japan’s net foreign investment would be one, single, lonely yen.

Net foreign investment is the total foreign investment value from a country, minus the investment from foreign entities in their own country. As the name implies, it’s the difference between how much a country is investing abroad vs. how much other countries are investing in them.

A positive net foreign investment means a country is investing more than it’s being invested in, meaning it’s a global net lender. Negative net foreign investment means it’s rolling in investments from foreigners within their borders, and doling out less abroad comparatively, making it a net borrower globally.

Can you smell that green…the economic growth? We sure can.

Related or Semi-related Video

Econ: What is Derived Factor Demand?11 Views

00:00

And finance Allah shmoop What is derived Factor Demand All

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right people We all know our basic supply and demand

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curve right The supply curve slopes upward reflecting that firms

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will want to make mohr things the more they can

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sell them for and the demand curve slopes downwards showing

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the consumers want to buy more things that cheaper They

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Khun get him That's the consumer marketplace right there Derived

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factor Demand is am or less the same but just

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the opposite Derived factor Demand is the demand by firms

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for factors of production to make products which is dependent

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on consumer demand for those products derived factor Demand takes

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the supply and demand curves down the rabbit hole flipping

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everything upside down Well where are we not in Wonderland

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here and not in the consumer market either All right

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now we're in the labor market There we go In

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the labor market the people who were demanding are now

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supplying and the firms that were supplying are now dim

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ending at little topsy turvy There Here people are supplying

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their labour which means in the labor market workers own

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the upward sloping supply curve like in order for consumers

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to make money to buy all that stuff in the

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consumer market Most of them have to sell their labor

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right Justus The buyers air now sellers The sellers are

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now buyers Firms which sell things on the consumer market

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need toe by labor to help them make those things

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that they're selling in the labor market Firms owned the

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downward sloping demand curve that is the derived in derived

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fact or demand is because the demand for one thing

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creates the demand for the other like in the labor

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market The demand for goods in the consumer market creates

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the demand for workers to make that stuff in the

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labor market well the labor demand was derived from the

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market demand Yeah curious er and curious er So what's

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the factor in factor demand Well derived factor Demand applies

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to the labor market but also to all inputs in

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general For firms factors of production are the inputs they

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need to make the stuff they're selling And one of

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those things that they're selling includes labor just like consumers

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have The consumer market firms have their factor market the

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main factors of production that firms need to make things

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while things like the land and labor and capital in

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raw materials and intelligence demand for flower in the factor

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market is in part derived from the demand of qassem

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in the consumer market the firm demand for battery engineers

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well it's derived from consumer demand for longer lasting batteries

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and or cars that don't run on Dead Dinosaur Group

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because having your phone die or your car at the

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worst time is well the worst demand for rubber on

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the rise by firms during the baby boom era Yeah

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you bet Maybe because the increase in supply babies led

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to an increase in the demand for rubber duckies and

02:51

or toys that bounced which increased factor demand for rubber

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Well maybe firms were making something else with the rubber 00:02:58.325 --> [endTime] Who knew Shmoop

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