In the 1980s and 1990s, an increasing number of states removed the restrictions on capital flows, one by one, that had been part of every state's policies since World War II. Why did states remove these controls?
A) Actors who controlled a lot of capital put pressure on governments to allow freer movement.
B) States removed these controls because allowing capital mobility provided access to massive amounts of international capital.
C) Liberalization is the belief that markets are better than governments at allocating economic resources.
D) All of the above are true.

Question

Quizplus · Accepted Answer

The removal of restrictions on capital flows was a result of a combination of factors, including pressure from actors who controlled capital, the belief in liberalization and market efficiency, and the potential access to large amounts of international capital. Therefore, all of the above options are correct.

In the 1980s and 1990s, an Increasing Number of States