GLOBAL CAPITAL FLOWS OF ITALY

Types of Capital Flows
Foreign Direct Investment
Equity Portfolio Investment
Bond Finance
Commercial Banking
Net versus Gross Flows
Determinants of Capital Flows
Capital Account Liberalization
Capital Controls
Assignment Questions:

There are benefits that emerge from the general liberalization of global capital flows. Explain the reasons for these benefits from a free market perspective.
Describe in detail the concepts of gross capital flow and net capital flow. Explain the importance to comprehend the difference between them.