Respuesta :
Global capital flow or movement refers to the transfer of financial resources from one nation to many nations.
What is global capital movement?
Global capital flow or movement refers to the transfer of financial resources from one nation to many nations.
It can be for the purpose of adjusting BOP disequilibrium or extending a nation's production frontier.
Nation's vulnerability to the effects of potential global capital flows increases with the size of the nation.
Since there are fewer resources available to them to spend for purchases or investments the smaller the country, the more is the effect.
The reasoning is that a small nation like Iceland would be overshadowed by investment banks and financial institutions because of its low economic production if global capital movements shift toward, short-term investments in physical assets.
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