Openness with capital mobility and price and wage flexibility across the region.
There is good capital mobility through new banking facilities.
Removal of barriers to capital mobility can also lead to net welfare gains.
There are however, distribution effects to labour resulting from capital mobility.
We are living in an era of capital mobility and labor mobility.
The effects of capital mobility on offshoring have been widely discussed.
The Bush administration wants to end remaining controls on capital mobility.
But under perfect capital mobility, any such sterilization would be met by further offsetting international flows.
In case of a small open economy, we assume perfect capital mobility.
Increased capital mobility was a result of a number of factors.