The movement of funds from one country to another for investment purposes.
Balance of Payments: The balance of payments is a record of all economic transactions between a country and the rest of the world.
Current Account: The current account is a part of the balance of payments that includes trade in goods, services, and income flows.
Capital Account: The capital account is a part of the balance of payments that includes capital transactions, such as investments in foreign countries.
Foreign Exchange Rates: Foreign exchange rates are the rates at which one currency can be exchanged for another.
Floating Exchange Rates: Floating exchange rates occur when a currency's exchange rate is determined by the supply and demand of the currency in foreign exchange markets.
Fixed Exchange Rates: Fixed exchange rates occur when a currency's exchange rate is set by the government and does not change.
Exchange Rate Regimes: An exchange rate regime is a set of rules and policies that determine how a country's exchange rate is set and managed.
International Financial Institutions: International financial institutions, such as the International Monetary Fund and the World Bank, provide financial resources and technical assistance to countries around the world.
Foreign Direct Investment: Foreign direct investment occurs when a company from one country invests in another country.
Portfolio Investment: Portfolio investment occurs when investors buy stocks or bonds from companies in foreign countries.
International Trade: International trade refers to the exchange of goods and services between countries.
Trade Policies: Trade policies refer to the rules and regulations that countries use to regulate their international trade.
Balance of Trade: The balance of trade is the difference between a country's exports and imports of goods.
Capital Flows: Capital flows refer to the movement of money between countries, including investments, loans, and other financial instruments.
International Monetary System: The international monetary system is the set of rules and policies that govern international payments and the exchange of currencies.
Foreign Direct Investment (FDI): This occurs when a company or individual invests directly in a foreign country by establishing or acquiring a business. FDI can provide long-term benefits to the host country, such as job creation and technology transfer.
Portfolio Investment: This includes investments in stocks, bonds, and other financial assets in foreign countries. Portfolio investment is usually short-term and aimed at earning a quick return on investment.
Foreign Aid: This is money or resources given by one country to another to support development, humanitarian efforts, or other initiatives.
Remittances: This is money sent by individuals working in a foreign country back to their home country. Remittances are often used to support family members and can make up a significant portion of a country's GDP.
International Loans: This includes loans made by international organizations such as the International Monetary Fund (IMF) or the World Bank, as well as commercial loans given by private lenders. International loans may be used to support infrastructure development, business operations, or other economic activities.
Foreign Exchange Reserves: This refers to a country's holdings of foreign currencies and other assets that can be used to support its domestic currency in the foreign exchange market.
International Trade: This includes the import and export of goods and services between countries. International trade can be a significant source of economic growth and job creation, as well as a source of political tension between countries.
Foreign Direct Investment in Infrastructure (FDII): This involves investments by foreign entities in local infrastructure projects such as water, energy, and transportation systems. FDII is often viewed as a crucial component of economic development, especially in emerging markets.
Cross-border investment: This refers to investments made by companies and individuals across national borders. Cross-border investment is often considered more speculative and risky than other types of capital flows due to the potential for political instability and other factors.
International Joint Ventures: This is a business arrangement where two or more companies from different countries come together to form a new business entity. Joint ventures can be a way for companies to share risk and gain access to new markets.