Question

Q6. There is disagreement among economists of whether the flow of capital is good or bad...

Q6. There is disagreement among economists of whether the flow of capital is good or bad for a country. Explain the benefits and costs of allowing capital to move freely into a country. (Your answer should not exceed 8 lines).

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Homework Answers

Answer #1

There is a disagreement among economist of whether the flow of capital is good or bad for a country yes it is a matter of discussion among the various economist because of different views to express the things and the content there are various factors which influence concept related to a flow of capital whether it is good or bad for our country whether the capital is coming that is called capital inflow or going that is called capital outflow is creating a great environment for investment and for the productive activities in the economy and what are the various benefits lots of question and lots of active and passive elements which are required to clean the real arguments on this concept.
The benefits and cost of allowing Capital to move freely into the country are as follows.
The first benefit is that increases the productivity in the nation
It increases the investment projects
It increases the employment opportunities in the country
It increases the proper and optimum utilisation of resources in the country
It increases the efficiency and effectiveness of the factors of production in the country

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