How to write the opening report on the impact and impact of international capital flows on China s e

International capital flows have a twofold impact on the economies of both the incoming and outgoing countries.

1. Positive effects for capital-importing countries:

1. Capital inflow can alleviate the shortage of domestic capital, promote domestic economic growth and employment, and at the same time facilitate the rational allocation of resources.

2. Capital inflow means an increase in the country's foreign exchange income, which is conducive to balancing the balance of payments.

3. Capital inflow promotes the development of the country's foreign countries.

Negative effects: 1. Short-term capital inflow is easy to cause chaos in the national currency and financial order, which may lead to a financial crisis.

2. Excessive capital inflow increases the burden of foreign debt, and it may fall into a debt crisis.

3. Improper use of long-term investment and vassalization of capital-exporting countries.

Second, for the capital-exporting countries, the positive effect:

1. The outflow of capital can find a favorable investment place for relatively excess capital and obtain high profits.

2. Capital outflow drives the development of domestic exports, expands the market share of domestic goods in foreign countries and occupies the world market.

Negative effects: Long-term excessive capital outflows lead to stagnation of economic growth in capital-exporting countries and reduce employment opportunities in their own countries.

The international flow of capital has a huge impact on a country and the world economy.

First, it expands investment channels across countries and regions, and improves global welfare.

second, it caused a "wealth effect" through the ** market;

Third, it improves the liquidity and efficiency of the use of funds;

Fourth, it promotes the integration of the world economy. At the same time, international capital flows can often exert an impact on a country and even the global economy through the "amplification effect", which far exceeds its strength, thereby exacerbating the volatility in the international financial market and causing turmoil in the financial market.

The impact of short-term capital flows on the domestic economy is mainly reflected in the impact on the balance of payments, exchange rate, monetary policy, and domestic financial market. Due to the large scale, short stay time, high vulnerability and strong destructiveness of international short-term capital flows, it is easier to launch an impact on a country's limited elasticity peg exchange rate system or fixed exchange rate system, and even trigger a currency crisis, which will have a greater impact on a country's economy and finance.

1. The impact on the international market, in the world, the short-term financing provided by the buyer and the seller (or the bank), such as prepaid loans, deferred payments and bill discounting, etc., are conducive to the international and international parties to obtain financial convenience, which is conducive to the smooth progress of the international market.

2. The impact on the balance of payments of various countries.

1) When a country has a temporary balance of payments imbalance, short-term capital flows are conducive to adjusting the imbalance.

2) When a country has a persistent balance of payments imbalance, speculative and value-preserving short-term capital flows will exacerbate the country's balance of payments imbalance.

3. Impact on the international financial market. Short-term capital flows can exacerbate turbulence in international financial markets, as evidenced by the fact that they can cause large fluctuations in exchange rates and increase the prevalence of speculation.

1. Positive impact on capital-importing countries.

1) It is conducive to meeting the demand for short-term funds. It enables the domestic economic sector to obtain external funds with lower financing costs and transaction costs, and obtain the overseas financial support urgently needed for economic development, so as to promote high-speed economic growth.

2) It is conducive to financial deepening. The entry of a large amount of capital and the participation of foreign investors in market trading activities have also forced the financial authorities of the countries into which capital flows to continuously improve the trading system, strengthen market supervision and regulation, improve the availability of information, and increase the liquidity and efficiency of the market.

2. Negative impact on capital-importing countries.

1) Weaken the effectiveness of macroeconomic policies. It has a great impact on the amount of currency. This leads to an expansion of the money supply, which leads to lower domestic interest rates and inflated investment, which leads to economic overheating and inflation.

2) Affect the level of domestic exchange rates, which in turn affects economic growth. Under a floating exchange rate regime, the nominal exchange rate of the local currency increases as a result of net capital inflows. It would undermine the international competitiveness of the country's exports, leading to a current-account deficit and a decline in GDP growth.

Under the fixed exchange rate system, it leads to the expansion of the domestic currency, which makes the local currency exchange rate overvalued, and is not conducive to the long-term growth of the economy.

3) Increase risks in the financial system. Under a fixed exchange rate system, the local currency is overvalued in order to maintain the exchange rate level, which will make it difficult to maintain the fixed exchange rate system and a currency crisis may occur. Under a floating exchange rate system, there are large inflows and outflows of capital, and currency crises can also occur if the exchange rate fluctuates too much.

A currency crisis can shake foreign investment confidence and trigger a reversal in investment, which in turn jeopardizes the stability of the financial system. At the same time, the expansion of risks in the financial system will also make it more difficult to manage the exchange rate and supervise all aspects of financial regulation.

(1) Economic reasons: The supply and demand of capital in the international capital market are the basic reasons for international capital flows.

2) Financial reasons: First, there are huge financial assets in the international scope, which need to be maintained and increased through international capital flows; Second, because there are huge differences in the rate of return and risk profile of various financial markets, the flow of capital in different markets is conducive to realizing the optimal combination of returns and risks. (3) Institutional reasons.

Since the 70s of the 20th century, countries have gradually relaxed foreign exchange controls, capital controls and even financial controls, and the liberalization of bank credit and market liberalization institutional arrangements have promoted the flow of international capital.

4) Technology and other factors: The wide application of electronic technology and network technology has connected the world's financial centers, greatly accelerating the convenience and speed of international capital flows.

Positive effects of international capital flows: (1) Integration effect: It is conducive to the realization of global economic integration, financial market integration and the integration of financial market assets and income.

2) Amplification effect: The leverage effect and herd effect generated by international capital flows make international capital flows exert far more influence on a country and even the global economy than its strength.

Negative effects of international capital flows: (1) Shocks to economic sovereignty. (2) Impact on the domestic financial market. and (3) the impact on the exchange rate and the balance of payments.

Answer: A, C, D, E

There are six main reasons for the rapid growth of international capital flows:

1) the formation of excess capital;

2) profit-driven;

3) changes in exchange rates and interest rates;

4) the impact of inflation;

5) the existence of political and economic depletion and the risk of war;

6) Vicious speculation by international speculators.