That Doesn’t Work Anymore

Chapter 16 International Capital Flows—Increasingly Critical

The digital transmission of communication across borders has given investors much greater confidence to invest out of their home markets and allowed companies to use global value supply chains with greater confidence. International capital flows have often been from investors chasing returns but increasingly have been driven by the globalization of business operations and international supply chains.

When balancing the decisions to invest in your home market or in international markets following capital flows can be critical when monitoring the health of a country, you can often see the interdependence of various countries’ economies and get a sense of what is driving a country’s economy. ...