Question

Which statement about capital mobility is true?

A. It helps countries that wish to remain economically independent.
B. It only helps economically stabilized countries
C. t only helps preindustrialized countries.
D. It helps both rich and poor countries.​

Answer 1

It is D. It helps both rich and poor countries. Capital mobility can help attract foreign direct investment into a country, improve the rate of return on financial capital, and reduce differences in real exchange rates. It can also help equalize incomes between different countries