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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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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 7 months ago
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