Capital Flows

Inbound Capital Flow: This term refers to the movement of money or investments into a particular country from foreign sources. It includes foreign investments in local businesses, purchases of government bonds by foreigners, and other forms of capital inflow.

Outbound Capital Flow: On the other hand, outbound capital flow refers to the movement of money or investments out of a particular country towards foreign destinations. It includes domestic investors purchasing assets abroad, individuals sending remittances to their home countries, and companies expanding operations overseas.

Balance of Payments: The balance of payments is a record that tracks all economic transactions between residents of one country and residents of other countries over a specific period. It includes both current account transactions (such as exports/imports) and financial account transactions (such as capital flows).