International flow of funds
What is current account, financial account, and capital account?
Balance of Payments
what is a relative increase in a country’s inflation rate will decrease its current account, as imports increase and exports decrease?
Impact of inflation
What is New opportunities may arise from the removal of government barriers?
Changes in Restrictions
What is reduce poverty and enhance economic development?
World Bank
What is Investors will normally prefer countries where the tax rates are relatively low?
Tax Rates on Interest or Dividends
What is events that increase trade volume?
Growth in international trade
What is a relative increase in a country’s income level will decrease its current account, as imports increase?
Impact of National Income
What is DFI has also been stimulated by the selling of government operations?
Privatization
International Monetary Fund
What is promote cooperation, stability in exchange rates, provide temporary funds to members, promote free mobility of capital and free trade?
Interest Rates
What is Money tends to flow to countries with high interest rates?
Agencies
What is a business established to provide a particular service?
The factors interact
What is such that their simultaneous influence on the balance of trade is complex?
Potential Economic Growth
What is Countries that have higher potential for economic growth are more attractive?
World Trade Organization
What is trade disputes and other issues?
Current account
What is keeps track of the flow of goods and services in and out of the US?
Factors affecting international trade flow
What is inflation, policies?
Impact of Government Restrictions
What is a government may reduce its country’s imports by imposing a tariff on imported goods, or by enforcing a quota; labor laws, business laws, subsidies, tax breaks, security laws?
Tax Rates
What is Countries that impose relatively low tax rates on corporate earnings are more likely to attract DFI?
International Finance Corporation
What is promote private enterprise within countries?
Growth in international trade
What is Fall of the Berlin Wall, Single European Act, NAFTA, and European Union?
International capital flow
What is restrictions, privatizations, and taxes?
Impactof Exchange Rates
What is if a country’s currency begins to rise in value, its current account balance will decrease as imports increase and exports decrease?
Exchange Rates
What is Firms typically prefer to invest in countries where the local currency is expected to strengthen against their own?
Organization for Economic Co-operation and Development
What is promote relationships that lead to globalization?
Exchange Rates
What is Foreign investors may be attracted if the local currency is expected to strengthen?