Rapid Reading (skimming, scanning, reading for general understanding

Of the basic Text 11.4)

Work in pairs or small groups.

Quickly skim the text to find out in what way the movement (flow) of capital occurs. Compare

Your idea with that of a partner.

Skim the text to find three largest lenders and three smallest borrowers, as shown in Table 6. Do

not try to read or understand the text in detail for this activity.

What forms of international movement of capital are of greatest interest to you after skimming

the text? Discuss it in a small group.

Compare and discuss the information you have just read with that gained at your specialized

Lectures on the subject of the unit.

loan and entrepreneur’s capital.

Portfolio

Investments

Investor investment bank comercial export—import surplus costs, expenses migration

Basic Text. Movement of capital. Portfolio and Direct Investments

The world capital market — is the market in which different nations deal in assets, securities,

Liability commitments.

Commercial banks, corporations, specialized credit and financial institutions are the participants

Of the world capital market. The international flow of capital is the capital export.

The causes of the capital export:

Relative, absolute capital surplus in the national market;

The difference in costs of production in different nations;