The movement of capital between countries through investments.
Balance of Payments: This is a record of all financial transactions that occur between a country and the rest of the world, including trade in goods and services, capital flows, and transfers of funds.
Exchange Rate Regimes: This refers to the different ways in which countries set and manage their exchange rates, which can have a significant impact on capital flows.
Foreign Direct Investment: This is the process of investing in a foreign country by either establishing a business or acquiring assets in that country, and can lead to significant capital inflows.
Portfolio Investment: This involves investing in stocks, bonds, and other assets in foreign markets, and can be a significant driver of capital flows.
Capital Controls: These are measures imposed by governments to restrict the movement of capital across national borders, and can have a significant impact on capital flows.
International Banking: This refers to the activities of banks that operate across multiple countries, and can play a significant role in facilitating capital flows.
International Debt: This includes sovereign debt, corporate debt, and other forms of borrowing by foreign entities, and can be a significant driver of capital flows.
International Trade: This involves the buying and selling of goods and services between countries, and can have a significant impact on capital flows.
International Financial Institutions: These include organizations such as the International Monetary Fund and the World Bank, which play a key role in international finance and can have a significant impact on capital flows.
Global Capital Markets: This refers to the market for buying and selling financial assets on a global scale, and can have a significant impact on capital flows.
Foreign Direct Investment (FDI): FDI is the investment of capital by a company in a foreign country with the purpose of establishing business operations or acquiring assets in that country. This type of investment involves a long-term commitment to the foreign market.
Portfolio Investment: Portfolio investment refers to investments made in financial assets, such as stocks, bonds, and mutual funds, in a foreign country. These investments are typically more short-term in nature and can be easily liquidated.
Loans and Credits: Loans and credits are capital flows that involve the transfer of funds from one country to another in the form of loans, credit lines, or other forms of debt. These funds are typically used to finance specific projects or investments.
Foreign Aid: Foreign aid is a type of capital flow that involves the transfer of resources from one country to another for the purpose of promoting economic development or helping those in need. This can include grants, loans, or technical assistance.
Remittances: Remittances are the transfer of funds by individuals working abroad back to their home country. These funds are typically used to support family members or for other personal expenses.
Foreign Exchange Reserves: Foreign exchange reserves are the holdings of foreign currencies by a central bank or other monetary authority. These reserves are used to stabilize a country's currency and maintain economic stability.
Repatriation of Profits: Repatriation of profits refers to the transfer of earnings back to a company's home country. This can occur through dividends, royalties, or other forms of income generated by business operations conducted in a foreign country.
Debt Forgiveness: Debt forgiveness is the cancellation of debt owed by a country to a creditor nation or international organization. This type of capital flow can provide relief to countries experiencing financial distress or economic hardship.
Currency Speculation: Currency speculation involves the buying and selling of currencies in the hope of making a profit from fluctuations in exchange rates. This type of capital flow can be highly volatile and risky.
Foreign Currency Swaps: Foreign currency swaps are agreements between two parties to exchange currencies for a specific period of time. These swaps are often used as a way to hedge against currency fluctuations or to access foreign currencies for specific purposes.