Globalization is a phenomenon by which economic agents around the world are more affected by international events than ever before. Households and firms may decide to invest in foreign markets now that they have access to information about foreign economic situations and markets.

Households/Consumers:

• Suppose you consider investing $1,000,000 in foreign markets/items. How would you start an investment plan in foreign countries?
• What foreign markets/items would you consider investing in? Why?
• Provide an investment scenario with $1,000,000 in foreign countries. Explain your rationale.
• What are advantages and disadvantages of investing in foreign markets/items instead of investing in domestic markets/items?

Firms/Producers:

• Suppose your company considers investing $100,000,000 in foreign markets/companies/items. How would you as an international project manager start an investment plan in foreign countries?
• What is the difference between a foreign direct investment and foreign portfolio investment? Which one would you prefer for your company? Why?
• Provide an investment scenario for your company with $100,000,000 in foreign countries? Explain your rationale.
• What are advantages and disadvantages of investing in foreign markets/items instead of investing in domestic markets/items?