Question: B) Increase in capital -What there are first? give example. then give real-world example! Explain how investment in IT infrastructure, Transport infrastructure influence the way

B) Increase in capital

-What there are first? give example. then give real-world example!

Explain how investment in IT infrastructure, Transport infrastructure influence the way business if carried out.

Discuss the concepts of outsourcing and offshoring of production process (explain the terms first before discussing)

  1. Government

-How does capital inflow affect AD, economic growth and BOP

-Any positive externalities?

-Overall benefits?

  1. Consumers

-Capital inflows are usually associated with Multi National Companies (MNC)

-MNC are big so they experience economies of scale so how this affect consumers in a good way?

  1. Producers

-How does capital mobility help producers? E.g. outsourcing and offsoucing opportunities

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