International flows of capital increase both efficiency and growth in countries around the world.

Question

Quizplus · Accepted Answer

International flows of capital allow countries to access funds for investment, which can improve productivity and lead to economic growth. By accessing capital from other countries, companies and governments can invest in projects and businesses that may not have been possible without outside funding. This can also help to create jobs and increase incomes, further boosting economic activity. However, it is important for countries to manage these flows carefully to ensure they do not lead to unsustainable debt levels or other negative effects.

International Flows of Capital Increase Both Efficiency and Growth in Countries