International capital flows in economic globalization

Author: Zhang Jinjie
Publisher:
Publish Date: 2000-01-01
Features: International capital flow refers to the transfer of capital from residents of one country to another country. The term "resident," according to the definition of the International Monetary Fund, includes general government, individuals, enterprises, and non-profit organizations. International capital flow arises from international economic transactions undertaken by countries for certain economic purposes and has a close relationship with a country's balance of payments. First, as a part of international economic activities, international capital flow is also included in the assessment of the balance of payments, with its content primarily reflected in the capital account of the balance of payments statement. Second, by controlling international capital flow, it is possible to regulate balance of payments surpluses or deficits and achieve balance of payments equilibrium.