Capital mobility

Definition

Capital mobility represents the ease with which businesses and individuals can move assets or money across borders without being hindered by regulations, taxes, or other barriers. It is a critical aspect of the global financial system that influences investment flows, exchange rates, and economic policy decisions worldwide.

Related terms

Foreign Direct Investment (FDI): This is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country.

Exchange Rate: The value of one currency for the purpose of conversion to another; it plays a crucial role in determining how much capital moves between countries.

International Monetary Fund (IMF):

An organization of 190 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world