globalization doesn't involve free flow of capital
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Answer:
Answer:
The growing interaction between different countries of the world has made the idea of globalisation increasingly popular in recent years. The globalisation of the economy has an important consequence with regard to capital flows into the economy.
Explanation:
Globalisation has both advantages and disadvantages. It is through globalisation and openness of an economy that foreign trade of a country increases which promotes economic growth. Trade between countries helps them to specialise in the production of goods and services according to their factor endowments and comparative efficiency.
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Capital flowing around the world is changing the way businesses grow and shrink. And, like an explorer trying to find his way out of the wilderness, business leaders would be wise to follow the pathways that capital follows. In so doing, business leaders can uncover new business opportunities and shun emerging risks.
We recently published a book (titled Capital Rising) looking at the effects of global capital flows. It is based on interviews, over four years, with executives at more than 50 companies—as well as on our work with governments and several firms. Our research suggests the kinds of questions the executives should scrutinize to profit from globalization of capital.