国际经济学课件.pptx

文档介绍：-国际经济学课件 (2)
2
Types of International Resource Movement
International Movement of Capital
Portfolio Investment
Foreign Direct Investment (FDI)---Multinational Corporations
International Movement of Labor (International Migration)
5
Two Major Reasons for Portfolio Investment
As Substitute for International Trade. But Why?
The factor price equalization theory shows that factor returns should equalize after free trade.
However, full free trade may not occur : Non-tradable goods; Transactions costs; Government restrictions on trade).
Factor prices thus largely remain unequal across different countries (., equalization is has not materialized).
6
Two Major Reasons for Portfolio Investment
As Substitute for International Trade: But why?
The factor price equalization theory shows that factor returns should equalize after free trade.
Therefore, factor prices remain consistently different across countries (, equalization is unlikely to occur).
Portfolio Investment thus takes place to take advantage of the higher returns available in some nations (., happens as a substitute for trade).
7
Two Major Reasons for Portfolio Investment
Substitute for international trade when factor prices fail to equalize.
If this is the case, then there would not be two-way investment. That is capital would have been flowing only to countries where the return is higher (capital abundant countries).
What then explains the flow of capital to labor abundant countries?
8
Two Major Reasons for Portfolio Investment
Substitute for international trade when factor prices fail to equalize.
If this is the case, then there would not be two-way investment. That is, capital would have been flowing only to countries where the return is higher (capital abundant countries). What then explains the flow to labor abundant countries?
Risk Diversification.
A strategy to reduce risk!
9
Two Major Reasons for Portfolio Investment
2. Risk Diversification
Portfolio theory