INTRODUCTION
In unit one, our focus was on international trade in goods and services. of late, we find enormous increase in international movement of capital. This phenomenon has received a great deal of attention from not just economists and policy-makers but people in different walks of life including workers’ organisations and members of the civil society. In this unit, we shall look into international capital movements; more precisely into why do capital move across national boundaries and what are the consequences of such capital movements. We shall also briefly touch upon the FDI situation in India.
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