Global capital-flows to developing countries increased significantly during the nineties. In view of the East Asian financial crisis and Latin American experience, which type of inflow is good for the host country?
Options
(a)Commercial loans
(b)Foreign Direct Investment
(c)Foreign Portfolio Investment
(d)External Commercial Borrowings
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Class 12Open Economy Macroeconomics— NCERT Economics, Chapter 6. An open economy trades goods and services and financial assets with the rest of the world; imports are a leakage from, and exports an injection into, the circular flow.…
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