capital movement

Quick Reference

The transfer of capital between countries, either by companies or individuals. Restrictions on exchange controls and capital transfers between countries have been greatly reduced in recent years. Capital movements seeking long-term gains are usually those made by companies investing abroad, for example to set up a factory. Capital movements seeking short-term gains are often more speculative, such as those taking advantage of temporarily high interest rates in another country or an expected change in the exchange rate.

Subjects: Financial Institutions and Services.

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