There is disagreement among economists of whether the flow of capital is good or bad for...

There is disagreement among economists of whether the flow of capital is good or bad for a country. Explain the benefits and costs of allowing capital to move freely into a country. (Your answer should not exceed 8 lines).

Expert Solution

Capital inflow is a concept which means that foreign countries are doing investment in the home country. It involves Purchases of assets. It increases the level of investment. On the other hand capital outflow is the movement of assets out of a country. It is not desirable because it will give rise to tax evasion and money laundering. The huge sums of money are leaving country.

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Rahul Sunny answered 8 months ago

There is disagreement among economists of whether the flow of capital is good or bad for...

There is disagreement among economists of whether the flow of capital is good or bad for a country. Explain the benefits and costs of allowing capital to move freely into a country. (Your answer should not exceed 8 lines).

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Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally likely for the coming year. The managers of the company must choose between two mutually exclusive projects. Assume that the project the company chooses will be the company’s only activity and that the company will close one year from today. The company is obligated to make a $5,400 payment to bondholders at the end of the year. The projects have the same systematic risk...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally likely for the coming year. The managers of the company must choose between two mutually exclusive projects. Assume that the project the company chooses will be the company’s only activity and that the company will close one year from today. The company is obligated to make a $5,200 payment to bondholders at the end of the year. The projects have the same systematic risk...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally likely for the coming year. The managers of the company must choose between two mutually exclusive projects. Assume that the project the company chooses will be the company’s only activity and that the company will close one year from today. The company is obligated to make a $5,100 payment to bondholders at the end of the year. The projects have the same systematic risk...

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Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally...

Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally likely for the coming year. Management must choose between two mutually exclusive projects. Assume that the project chosen will be the firm’s only activity and that the firm will close one year from today. The firm is obligated to make a $4,000 payment to bondholders at the end of the year. The projects have the same systematic risk, but different volatilities. Consider the following...

Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally...

Sheaves Corporation economists estimate that a good business environment and a bad business environment are equally likely for the coming year. Management must choose between two mutually exclusive projects. Assume that the project chosen will be the firm’s only activity and that the firm will close one year from today. The firm is obligated to make a $4,500 payment to bondholders at the end of the year. The projects have the same systematic risk, but different volatilities. Consider the following...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally...

Fountain Corporation’s economists estimate that a good business environment and a bad business environment are equally likely for the coming year. The managers of the company must choose between two mutually exclusive projects. Assume that the project the company chooses will be the company’s only activity and that the company will close one year from today. The company is obligated to make a $5,500 payment to bondholders at the end of the year. The projects have the same systematic risk...

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There is disagreement among economists of whether the flow of capital is good or bad for...

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