It refers to the movement of money for the
purpose of investment ,trade,business, production
It may be within the country or from/to outside countries
International capital flow may be in the form of FDI, FII ,
Foreign aids, Unilateral payments, Loan from foreign countries(Debt
flow)
Capital flows are very crucial in the case of an emerging
economy like India, China,..Because it helps in economic
growth
Why restrictions on capital follow (Capital controls)
It refers to any measure taken by a government, central bank or
other regulatory body to limit the flow of foreign
capital.following are the reason the Government restrict the
foreign capital flow