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irina [24]
3 years ago
9

Which statement about capital mobility is true?

History
2 answers:
ArbitrLikvidat [17]3 years ago
8 0

Answer: A. It helps both rich and poor countries

Explanation:

Capital Mobility refers to the easy movement of money or other forms of capital across different different countries with little to no transaction costs. A lot of research have centered on whether Capital Mobility helps the Economies of both rich and poor nations with the general consensus being that it does indeed help both but with varying degrees.

Poorer countries are able to get capital that is needed for investment and growth. Even though this is helpful, should the capital come from richer countries, profits will go back to them as well leaving the Poorer countries unable to enjoy the profits. With capital mobility though, remittances to poorer countries from their citizens in richer countries will be easier.

Richer countries however will enjoy capital mobility as it usually means that more money is flowing into them than out due to their stable economies and investment opportunities.

rewona [7]3 years ago
8 0

Answer:

It helps both rich and poor countries

verified on  a p e x

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