Capital And Investment Movement In Globalisation
Thus globalisation means the integration of economies of the world resulting from free flows of trade capital. Globalisation refers to the increased openness of an economy to the international trade capital flows both portfolio and foreign direct investment FDI transfer of technology and free movement of labour or people.
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Capital movements of this type increase world product and can thereby increase overall welfare.
Capital and investment movement in globalisation. From the viewpoint of a country like Israel capital movements to the economy can raise the capital. This respect is that globalization enables capital to move from the developed countries in which the return on capital is low to developing countries in which the average return on capital is high.
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