What are the main forms through which foreign capital flows into ...

[ec501234]

What are the main forms through which foreign capital flows into LDCs? Discuss the evolution of the various forms across the last decade.
 
  What will be an ideal response?

Question 2

Compared to Latin America in the 1980s, East Asian countries in the 1990s had
 
  a. higher budget deficits and higher current account deficits
  b. lower budget deficits and lower current account deficits
  c. higher budget deficits and lower current account deficits
  d. lower budget deficits and higher current account deficits
  e. similar budget and current account deficits

[Brummell1998]

Answer to Question 1

Official and private flows. Private flows are made up of FDI, portfolio investment and commercial bank loans. Official flows are now much less important than they were at the beginning of the 1990s (see Figure 14.3). In recent years, bank loans represent net outflows for LDCs.

Answer to Question 2

B

[ec501234]

Excellent

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Thanks for the timely response, appreciate it