Question
Tabulate the difference between the following
2.2.1 Direct investment
2.2.3 Unskilled labour
(2x1) 2
2.2.2 Portfolio investment
2.2.4 Skilled labour
(2x4)
2.2.1 Direct investment
2.2.3 Unskilled labour
(2x1) 2
2.2.2 Portfolio investment
2.2.4 Skilled labour
(2x4)
Answers
GPT-4o mini
Here’s a tabulated comparison of the differences between direct investment, portfolio investment, unskilled labor, and skilled labor:
| Category | Definition | Characteristics | Examples |
|------------------------------|-----------------------------------------|----------------------------------------------------------|----------------------------------|
| **2.2.1 Direct Investment** | Investment where an investor acquires a direct stake in a company or physical assets in another country. | - Long-term commitment<br>- Active management involvement<br>- Risk exposure in foreign operations | Foreign Direct Investment (FDI)<br>Establishing a subsidiary abroad |
| **2.2.2 Portfolio Investment** | Investment in financial assets such as stocks and bonds, without direct control over the companies. | - Short-term focus<br>- Passive investment<br>- Less risk compared to direct investment | Buying stocks of a foreign company<br>Investing in foreign mutual funds |
| Category | Definition | Characteristics | Examples |
|------------------------------|-----------------------------------------|--------------------------------------------------------------|----------------------------------|
| **2.2.3 Unskilled Labour** | Labor that requires minimal education and training; involves basic tasks. | - Low wages<br>- Limited job training & skill requirements<br>- Often employed in manual or routine tasks | Agricultural work<br>Construction labor |
| **2.2.4 Skilled Labour** | Labor that requires specialized training, education, and skills. | - Higher wages<br>- Advanced qualifications & training<br>- More complex job responsibilities | Doctors<br>Engineers<br>IT professionals |
This table highlights the key differences across investments and labor types in terms of definition, characteristics, and examples.
| Category | Definition | Characteristics | Examples |
|------------------------------|-----------------------------------------|----------------------------------------------------------|----------------------------------|
| **2.2.1 Direct Investment** | Investment where an investor acquires a direct stake in a company or physical assets in another country. | - Long-term commitment<br>- Active management involvement<br>- Risk exposure in foreign operations | Foreign Direct Investment (FDI)<br>Establishing a subsidiary abroad |
| **2.2.2 Portfolio Investment** | Investment in financial assets such as stocks and bonds, without direct control over the companies. | - Short-term focus<br>- Passive investment<br>- Less risk compared to direct investment | Buying stocks of a foreign company<br>Investing in foreign mutual funds |
| Category | Definition | Characteristics | Examples |
|------------------------------|-----------------------------------------|--------------------------------------------------------------|----------------------------------|
| **2.2.3 Unskilled Labour** | Labor that requires minimal education and training; involves basic tasks. | - Low wages<br>- Limited job training & skill requirements<br>- Often employed in manual or routine tasks | Agricultural work<br>Construction labor |
| **2.2.4 Skilled Labour** | Labor that requires specialized training, education, and skills. | - Higher wages<br>- Advanced qualifications & training<br>- More complex job responsibilities | Doctors<br>Engineers<br>IT professionals |
This table highlights the key differences across investments and labor types in terms of definition, characteristics, and examples.