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Determine the Long-term direct investment flows
Long-term direct investment flows are when investors buy physical assets like land or capital equipment in another nation. This form of investment will normally be undertaken with a view to a long-term commitment producing in the country over some years.
Long-term portfolio capital flows are when investors buy equities and bonds in another nation with a view to holding these assets again for a period of years.
In contrast short-term speculative 'hot money' flows move extremely quickly. For some traders holding bonds or shares for longer than two minutes is considered to be the very long run. Speculative currency flows are caused first by different currencies earning different interest rates and second by speculative belief which exchange rates will fall or rise.
While referring to the "EYE on YOUR LIFE" section on page 235 of the textbook, and the economic concepts you have accumulated during our course, consider the trade policies that se
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