Financial investment refers to putting aside a fixed amount of money and expecting some kind of gain out of it within a stipulated time frame. The types of financial investment include Mutual Funds, Fixed Deposits, Bonds, Stock, Equities, Real Estate (Residential/Commercial Property) and Gold.
International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.
Stock- Stocks represent ownership shares, also known as equity shares. Whether you make or lose money on a stock depends on the success or failure of the company, which type of stock you own, and what’s going on in the stock market overall and other factors.
Fixed Deposit- A fixed deposit, also known as an FD, is an investment instrument offered by banks, as well as non-banking financial companies (NBFC) to their customers to help them save money. With an FD Account, you can invest a sizeable amount of money at a predetermined rate of interest for a fixed period. Banks offers different rates of interest for a fixed deposit account. You can choose a fixed deposit for a period ranging from minimum 7-14 days to maximum 10 years.
Mutual Funds- A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Bonds- Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders. Variable or floating interest rates are also now quite common. Bond prices are inversely correlated with interest rates: when rates go up, bond prices fall and vice-versa. Bonds have maturity dates at which point the principal amount must be paid back in full or risk default.
Equities- Equity represents the value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off. We can also think of equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset. Equity represents the shareholders’ stake in the company, identified on a company's balance sheet. The calculation of equity is a company's total assets minus its total liabilities, and is used in several key financial ratios such as ROE. Home equity is the value of a homeowner's property and is another way the term equity is used.
Gold- Gold funds are investment vehicles that offer exposure to gold. They come in a variety of forms, but three popular varieties are those investing in physical gold, gold futures contracts, and gold mining companies. Investors interested in hedging against inflation generally opt for gold funds that hold gold bullion or futures, whereas investors who are particularly bullish on gold tend to also incorporate gold mining companies.
Real Estate- Involves the purchase, management and sale or rental of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Someone who actively or passively invests in real estate is called a real estate entrepreneur or a real estate investor.
A product that is sold to the global market is called an export, and a product that is bought from the global market is an import.
Different countries are endowed with different assets and natural resources: land, labor, capital, and technology, etc. This allows some countries to produce the same good more efficiently—in other words, more quickly and at lower cost. Therefore, they may sell it more cheaply than other countries. If a country cannot efficiently produce an item, it can obtain it by trading with another country that can. This is known as specialization in international trade.