The flow of capital investment from emerging markets to developed markets resulted in:
A) greatly reduced borrowing costs and created a huge wave of investment funds in developed market economies.
B) overpriced assets in the emerging market economies.
C) increased political leverage for the emerging markets in developed economies.
D) a decline of responsibility in the emerging markets as they relied on developed economies for returns on investment.

Question

Quizplus · Accepted Answer

The flow of capital investment from emerging markets to developed markets often leads to reduced borrowing costs in developed markets due to the increased supply of capital. This influx of funds can stimulate investment in these economies by making it cheaper for businesses and governments to finance new projects and expansions.

The Flow of Capital Investment from Emerging Markets to Developed