Unit on Foreign Investment & Globalization
This unit contains a series of activities in which students will learn about the role of foreign investment in an economy, learn about the differences between foreign direct investmentThis category refers to international investment in which the investor obtains a lasting interest in an enterprise in another country. Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants or equipment. and foreign portfolio investmentFPIFPI is a category of investment instruments that are more easily traded, may be less permanent, and do not represent a controlling stake in an enterprise. These include investments via equity instruments (stocks) or debt (bondsA certificate issued by a government or company representing a promise by the bond issuer to pay the bondholder interest in addition to the principal amount of the bond after a specified period of time. For example, a 10-year bond purchased today costs . When you “redeem” or cash in the bond after ten years, the issuer repays the principal plus interest at a rate established when the bond was issued.) of a foreign enterprise that does not necessarily represent a long-term interest. is a category of investment instruments that are more easily traded, may be less permanent, and do not represent a controlling stake in an enterprise. These include investments via equity instruments (stocks) or debt (bondsA certificate issued by a government or company representing a promise by the bond issuer to pay the bondholder interest in addition to the principal amount of the bond after a specified period of time. For example, a 10-year bond purchased today costs . When you “redeem” or cash in the bond after ten years, the issuer repays the principal plus interest at a rate established when the bond was issued.) of a foreign enterprise that does not necessarily represent a long-term interest., and participate in a role-playing activity on government decision-making related to foreign investment policies.
Unit on Foreign Investment and Latin America
The lesson plan is divided into four activities. The introductory discussion provides context and vocabulary for the lesson and Activity 1 provides an application activity for extension of the concepts learned in this lesson. Activity 2 is intended to raise student awareness of the lesson subject, to introduce larger concepts, and to pose challenging questions. Activity 3 tries that the student applies the concept by making decisions from the point of view of a company that wants to choose a country in Latin America for investment purposes. Activity 4 shows the positive and negative effects that foreign investment could have on the Mexican economy. Mr. Gabriel Leandro, a professor of economics at Universidad Latina de Costa Rica, adapted this lesson plan. His website is www.auladeeconomia.com.
