Question: 7. Factors affecting international capital flows 1 All else equal, a decrease in the interest rate of a country will portfolio investment in that country.

7. Factors affecting international capital flows 1 All else equal, a decrease in the interest rate of a country will portfolio investment in

7. Factors affecting international capital flows 1 All else equal, a decrease in the interest rate of a country will portfolio investment in that country. If a country's currency is expected to strengthen relative to the currency of a potential foreign investor, direct foreign investment (DFI) becomes 2 likely. 1. Decrease or increase 2. More or less

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