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International capital flows involve the transfer of capital between countries with the goal of obtaining extra profit. There are two main types of international capital movement: short-term capital movements like deposits, bills, and loans which are usually less than a year; and long-term capital movements like direct investments, portfolio investments, and government assistance which last over a year. The composition of capital and financial flows includes capital investment, portfolio investment in debt or equity securities, direct investment through foreign direct investment, and changes in international reserves. The history of international capital flows shows a large increase from the 1990s to early 2000s, peaking at around $9 trillion in 2000 according to one figure, with flows going to industrialized countries, international organizations,
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The Asian Financial Crisis began in Thailand in 1997 and spread to other Asian countries. Countries had fixed exchange rates, large current account deficits, and over-reliance on short-term foreign loans. When the US dollar strengthened, exports became more expensive, growth slowed, and currencies depreciated sharply. This made it difficult to repay foreign debts. The crisis deepened as foreign investors withdrew money and domestic banks refused to refinance loans. Countries turned to the IMF for assistance but austerity measures further damaged economies. The crisis highlighted issues of excessive debt, currency risk, and poor financial regulation.
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This is an update of the 2012 presentation at https://www.slideshare.net/WorldResources/emerging-actors-in-development-finance-a-closer-look-at-chinas-overseas-investment
When it comes to overseas development finance, China is definitely a country to watch. Due to the country’s unprecedented economic growth, China’s overseas investments have increased exponentially in recent years. Between 2009 and 2010, two Chinese state-owned banks lent more money to other developing nations than the World Bank did. In fact, between 2002 and 2011, China’s outward foreign direct investment (OFDI) stock grew from $29 billion to more than $424 billion.
But what factors are driving all of this growth? What areas of the world are on the receiving end of China’s OFDI flows? And what sorts of social and environmental standards are in place for banks’ and enterprises’ investments? WRI answers these questions and many more in its recently updated powerpoint presentation "Chinese Development Finance: A Closer Look at Chinese Sustainable Finance."
Mutual fund industry - An Intercontinental Analysis
The document provides a summary of the mutual fund industry in the United States, China, and India. It discusses the structure and regulations of the mutual fund market in the US, including the types of funds, fees and expenses, taxation, and the top fund management companies. The US mutual fund industry has over $13 trillion in assets, with equity funds making up the majority. Expense ratios for funds have declined since 2002. Vanguard is the largest fund manager in the US.
Japan: A Financial Insight
Japan has experienced strong post-war economic growth and a large GDP, though its population is aging and declining. It has historically had a large trade surplus due to exports exceeding imports, especially in manufactured goods, though its trade balance has decreased in recent years. Japan also typically runs a current account surplus and maintains large foreign exchange reserves to intervene in currency markets and influence exchange rates. However, foreign direct investment into Japan remains relatively low despite government efforts to increase it.
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The document provides an overview of international finance topics including the globalized world economy, developments that facilitated globalization like reduced trade barriers, key balance of payments accounts and transactions, and the relationship between a country's current account and capital account balances. It also defines important terms like foreign direct investment, official reserve assets, and balance of payments surpluses and deficits.
International Flow of Funds
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Globlization
This document provides an overview of key concepts in international business including definitions of international business, globalization, drivers of globalization, and models of internationalization. It discusses the globalization of markets and production. It also examines changing demographics in the global economy including shifts in world GDP, trade, foreign direct investment, and the nature of multinational enterprises. Finally, it outlines some of the debates around the impacts of globalization.
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This document provides an overview of key concepts related to globalization and international financial management. It discusses factors influencing globalization such as trade agreements and technology. Several theories of international trade are described, including comparative advantage and theories based on factor endowments. The roles of multinational corporations in facilitating globalization and risks they face are outlined. Governance models in the US and Asia are compared. Finally, structure and participants in foreign exchange markets are reviewed.
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This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
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Presentation
- 1. International Capital Flows - Definition Capital and Capital Flows Can Be Defined as Below: Capital is one of the factors of production (labor and land are the others) and it is the most mobile of them on international level International capital Flow is any transfer of capital between countries (with the goal of obtaining extra profit)
- 3. • Demand deposits, • Bills, • Overdraft, • Loan & commercial bank credits, • Commercial & financial papers and acceptance. Short-Term Capital Movements • Direct investments, • Portfolio investments, • Assistance from governments & institutions. Long-Term Capital Movements
- 4. Financing On Trade In Goods Financing On Trade In Services Financing On Assets
- 5. Composition Of Capital And Financial Flows
- 6. 1) Capital investment 2) Portfolio investment in either debt or equality securities 3) Direct investment in domestic firms (FDI) including start-ups 4) Changes in international reserves
- 7. History Of International Capital Flow
- 8. 100 100 100 200 100 100 100 100 100 2700 3000 4100 4600 5100 6900 4700 3700 5200 400 700 800 150 800 1000 400 400 1000 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 1995 996 1997 1998 1999 2000 2001 2002 2003 $BILLIONS Figure 1: World Financial Flows LDC INDUSTRIAL INT. ORG.
- 9. -600 -500 -400 -300 -200 -100 0 100 200 300 1995 1996 1997 1998 1999 2000 2001 2002 2003 $BILLIONS Figure 2: Current Account Balances (CABs) U.S. CAB NON U.S. INDUSTRIAL COUNTRIES' CAB LDCS' CAB