Foreign debt Flashcards
1
Q
What is (net) foreign debt
A
total stock of loans owed by Australians to foreigners minus obligations of foreigners to Australia.
2
Q
What is (net) foreign equity
A
total value of asses in Australia in foreign ownership minus total value of assets overseas owned by Australians
3
Q
What is (net) foreign liabilities
A
Australia’s financial obligations (foreign debt + foreign equity) minus the rest of the worlds financial obligations to Australia
4
Q
What are the benefits of foreign investment
A
Money into Australia
Increased GDP due to higher production, employment, investment etc
5
Q
What are the cons of foreign investment
A
Lost ownership (equity) of Aus. assets
outflows of profits and dividends overseas
