international financial flows

international financial flows

1. remittances: people working overseas sending money back to their home country

2. Overseas developmental assistance (Aid)

3. FDI (foreign direct investment)

   • why would you invest into another country?
     • cheaper labour cheaper land access to natural resources fewer regulations new growing market may have more skilled workers may have easier transport operations of competitiors devaluation of currency avoiding trade barriers off shoring

4. Debt andportfolio investment: buy stocks and shares investment funds or well funds