Business Conversation Questions are widely used in speaking activities as pair interview or group discussion.
Foreign direct investment (FDI) is when companies put money into investment projects in other countries. With free cross-border capital flows, they can repatriate their profits to their own country, or withdraw their investment altogether.
There is debate about whether governments should try to limit capital flows – inflows and outflows – with capital controls or, whether they should follow the global trend towards liberalization.
Some economists say that too much liberalization of capital flows leads to instability in a country’s economy, with foreign exchange crises which lead to devaluation – its currency becomes wort less in terms of others. For example, some say that China’s growth has benefited from the fact that its currency is not freely convertible. This lack of convertibility prevents the capital outflows that some other Asian economies have suffered from at various times.
From Business Vocabulary in Use
Example Conversation Questions:
What does direct investment mean?
What are the pros and cons of direct investment?
What does foreign direct investment mean?
What are the benefits of foreign direct investment for a country?
What are some potential risks of foreign direct investment?
What does cross-border capital flows mean?
What are the techniques to develop cross-border capital flows?
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