Master this deck with 31 terms through effective study methods.
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It is the ratio of exports and imports to GDP.
Larger countries tend to have lower rates of openness.
It increased from 20% to nearly 60%.
Lower transport costs and reduced trade barriers.
They led to a continuous decrease in tariffs.
Domestic prices must decrease to remain competitive.
It leads to price convergence across markets.
FDI involves long-term control, while portfolio investment is short-term.
Greenfield and brownfield investments.
They protect local industries and increase state revenue.
They set prices based on domestic costs, ignoring global prices.
Lower barriers typically promote economic growth.
Their abolition led to increased imports of American wheat.
Domestic prices align closely with global prices.
Lower transport costs facilitate increased trade.
Firms can set prices independently of global market prices.
There was a strong growth in capital flows.
Désintermédiation, déréglementation, décloisonnement.
It is positive, indicating more capital inflow than outflow.
There are costs associated with diversification.
It indicates perfect financial integration.
There has been a progressive reduction in regulations.
Capital should flow to emerging markets but often does not.
Investment must equal domestic savings.
Foreign savings can finance domestic investment.
They can export savings and have a current account surplus.
It may lead to increased transfer of wealth to foreign creditors.
Capital mobility can delay necessary adjustments.
High consumption and low savings lead to a deficit.
Abundant savings in countries like Germany and Japan.
Worker mobility and its impact on wages and jobs.