According to economists, which of the following statements about international capital mobility is correct?
A) International resource mobility has had no effect upon world GDP.
B) International resource mobility has had a negative effect upon world GDP.
C) International resource mobility has had a positive effect upon world GDP.
D) International resource mobility has had such a small effect upon world GDP that it is not worth measuring.

Question

Quizplus · Accepted Answer

Most economists agree that international capital mobility has had a positive effect on world GDP. By allowing capital to flow easily between countries, international resource mobility promotes economic growth and can help countries to access the resources they need to develop their economies. While there may be some negative effects associated with capital mobility, such as increased volatility in financial markets, overall the benefits are thought to be significant.

According to Economists, Which of the Following Statements About International