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Unformatted text preview: pital Markets and Investments Capital Markets and Investments – Banks, securities firms, stock markets, and foreign exchange markets
– currency market is least stable and predictable
– “capital flight” (eg. Asian Financial Crisis of 1998)
– Capital controls favored by developing countries Asian financial crisis of 199899 Capital Markets and Investments
Capital Markets and Investments
• FDI Private investment in foreign countries
– Good or bad for developing countries?
•Incentives – lower pollution and labor standards – ‘race to the bottom’
•Distorts domestic economy/society
•Influence on politics/corruption
•BUT – source of ideas, finance, cheaper goods Large Inflows to Developing Large Inflows to Developing Countries Investment helps make possible Investment helps make possible increas...
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This note was uploaded on 02/25/2014 for the course IR 271 taught by Professor Corgan during the Fall '08 term at BU.
- Fall '08