For the United States, U.S. direct foreign investment abroad is ...

[abc]

For the United States, U.S. direct foreign investment abroad is more significant than foreign investment in U.S. securities and currency.
 
  Indicate whether the statement is true or false

Question 2

International financial flows have changed in meaningful ways, and these changes were brought to the attention of policy makers by the Asian financial crisis. Describe three changes.
 
  What will be an ideal response?

[lucas dlamini]

Answer to Question 1

FALSE

Answer to Question 2

First, international financial flows were dramatically greater than in prior decades. Second, many developing countries became active participants in international finance in a meaningful way. Finally, more so than in the past, contagion effects can instantaneously spread a crisis from one area to another.