difference between free movement of goods and free mobility of capital?

2010-12-13 2:55 pm
what is the difference between free movement of goods (i.e. international trade) and free mobility of capital?

回答 (2)

2010-12-16 5:30 am
✔ 最佳答案
Goods require transport: ships, railroads, trucks, etc.

Capital was just paper and has become just electrons.

In both cases, governments often try to regulate the movement. For goods there are embargoes, tariffs, quotas, etc. For capital there are capital controls:
http://en.wikipedia.org/wiki/Capital_control
2010-12-13 2:57 pm
Goods are end products - things one can purchase. Capital is the stuff that allows those goods to be manufactured: machinery, factory buildings, cash investments, raw materials, etc.


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