Foreign direct and portfolio investment, flows, stocks and the international investment position

What this note covers

1. Classify foreign investment by relationship and instrument
2. Separate transactions during a period from positions at a date
3. Connect foreign investment to the balance of payments
4. Compare benefits and risks of direct and portfolio flows
5. Interpret the international investment position and servicing burden
6. Build a data-led extended response

6 sections · 10 key terms & formulas · 6 common mistakes