18-8. Last year, $100 million in outstanding bank loans to a developing nation’s government were not renewed, and the developing nation’s government paid off $50 million in maturing government bonds that had been held by foreign residents. During that year, however, a new group of banks participated in a $125 million loan to help finance a major government construction project in the capital city. Domestic firms also issued $50 million in bonds and $75 mil-lion in stocks to foreign investors. All of the stocks issued gave the foreign investors more than 10 per-cent shares of the domestic firms. (See page 420.)
a. What was gross foreign investment in this nation last year?
b. What was net foreign investment in this nation last year?
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