In macroeconomics give at least three reasons why funds flow from country to country

Economics Dec 14, 2020

In macroeconomics give at least three reasons why funds flow from country to country.

Expert Solution

One reason why funds flow from country to country is through investments of interest rate accounts and other assets connected to the financial investment components such as foreign and domestic financial assets. The other reason why funds flow from country to country is through the import and export of goods and services from one country to the other where one country has a trade deficit and is recorded on a balance of payment. Lastly, the loans borrowed from one country to the other will be the reason as to why funds will move from one country to the other.

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