When there are capital gains, such as in the real estate or stock markets, or there are exchange rate changes, we see a change in the external wealth calculation. These are known as:

Question

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Valuation effects refer to the change in the external wealth calculation due to capital gains or exchange rate changes. Financial flows refer to the movement of funds between countries, investment flows refer to the flow of investments (such as foreign direct investment), and capital flows refer to the movement of financial assets between countries.

When There Are Capital Gains, Such as in the Real