International economics paper

GLOBAL CAPITAL FLOWS OF ITALY

Introduction

1. Types of Capital Flows
2. Foreign Direct Investment
3. Equity Portfolio Investment
4. Bond Finance
5. Commercial Banking
6. Net versus Gross Flows
7. Determinants of Capital Flows
8. Capital Account Liberalization
9. Capital Controls

Assignment Questions:

1. There are benefits that emerge from the general liberalization of global capital flows. Explain the reasons for these benefits from a free market perspective.
2. Describe in detail the concepts of gross capital flow and net capital flow. Explain the importance to comprehend the difference between them.