For example, if foreign companies are buying/Taking over UK companies in Aggregate Demand would this been seen as investment, importing or both?
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For example, if foreign companies are buying/Taking over UK companies in Aggregate Demand would this been seen as investment, importing or both?
Capital inflows are an investment but the result in the country has a negative impact on international debt, in other words they owe more money in the same way that imports create a debt. You need to split long term and short term impacts. Capital outflows are of greater concern than capital inflows
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