Foreign trade relates to the country's exports and imports .foreign investment means ,multinational companies(MNC) like ford,Microsoft etc invest their money to increase their business and profits.

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The trade between the different countries of the world is known as foreign trade. It also includes imports and exports. The inflow of goods are known as import trade and outflow is known as export trade. On the other hand, the investment that provides the inflow of foreign capital and funds are known as foreign investment.