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For Given Risk Levels, a Relatively Higher Return in One

question 9

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For given risk levels, a relatively higher return in one country will lead to capital inflow to that country.For given returns, a relatively higher degree of risk in one country will lead to capital outflows from that country.


Definitions:

Composition

A term referring to the arrangement or makeup of something's parts or elements, often used in contexts ranging from music to writing, and to the chemical makeup of substances.

Maladaptation

Behavior or traits that are counterproductive to an individual's well-being or survival in a particular environment.

Discipline

The practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.

Inspecting

The process of examining something closely in order to gain information.

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