GLOBAL CAPITAL FLOWS OF ITALY
Introduction
- Types of Capital Flows
- Foreign Direct Investment
- Equity Portfolio Investment
- Bond Finance
- Commercial Banking
- Net versus Gross Flows
- Determinants of Capital Flows
- Capital Account Liberalization
- Capital Controls
Assignment Questions:
- There are benefits that emerge from the general liberalization of global capital flows. Explain the reasons for these benefits from a free market perspective.
- Describe in detail the concepts of gross capital flow and net capital flow. Explain the importance to comprehend the difference between them.