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Explain the implications international capital flows problem.
Implications:
• FDI can assist physical capital accumulation and result within growth - usually beneficial but needs dividend payments
• Capital speculative inflows are to be discouraged.
theory of economies of scale,dis-economies,intergration
Net exports normally decrease with the effect when aggregate output decline. When a concretionary fiscal policy is implemented net exports will go up . When government maintain the
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cn i get an example of it
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