What is likely to happen to the huge global capital flows, Business Management

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What is likely to happen to the huge global capital flows

1. During the 1990s, Mexico and Argentina went from economic pariahs with huge foreign debts to countries posting strong economic growth and welcoming foreign investment. What would you expect these changes to do to their current-account balances?

2. Suppose the trade imbalances of the 2000s largely disappear during the next decade. What is likely to happen to the huge global capital flows of the 2000s? What is the link between the trade imbalances and the global movement of capital?

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