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Computing the gross foreign investment

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Reference no: EM131088620

Last year,$100million in outstanding bank loans to a developing nation's not renewed , and the developing nation's government paid off $50 million in maturing government bonds that had been held by foreign residents. During that year, however, a new group of banks participated in a $125 million loan to help finance a major government construction project in the capital city. Domestic firms also issued $50 million in bonds and $75 million in stocks to foreign investors. All of the stocks issued gave the foreign investors more than 10% shares of the domestic firms.

a) What was gross foreign investment in this nation last year?

b) What was net foreign investment in this nation last year?

Reference no: EM131088620

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