1. ‘The international mobility of capital, both in the form of portfolio capital and direct foreign investment, can make a significant positive contribution to economic welfare.’ Evaluate this...

1. ‘The international mobility of capital, both in the form of portfolio capital and direct foreign investment, can make a significant positive contribution to economic welfare.’ Evaluate this statement. Examine some of the problems associated with enhanced capital mobility.

2. ‘The international mobility of factors of production can contribute significantly to the reduction in international differences in income and wealth.’ Discuss in the context of portfolio capital mobility.