Overview
Capital flows are crucial for the economic development of emerging markets, providing the necessary funds for investment in infrastructure and businesses. Understanding the types of capital flows, such as Foreign Direct Investment and portfolio investment, helps in analyzing their impact on economic...
Key Terms
Example: A U.S. company opening a factory in India.
Example: Buying shares of a Brazilian company from the U.S.
Example: 1 USD = 75 INR.
Example: A country’s GDP growing by 5% annually.
Example: Investors pulling out funds from a country due to political instability.
Example: Stock prices can be highly volatile during economic crises.