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What Are the Three Types of Social Capital

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What are the three types of social capital?

Understand the concept of currency exchange and its effects on international investments.
Grasp the importance of international diversification and its impact on portfolio performance.
Identify various financial instruments and investment vehicles used in international finance.
Understand how inflation, taxes, transaction costs, and capital controls affect international CAPM applications.

Definitions:

Brainstorming

A method used to generate creative ideas by allowing participants to offer ideas spontaneously and unjudged.

Convergent Thinking

A cognitive process where the focus is on arriving at a single, correct solution to a problem.

Functional Analysis

A study aimed at understanding the purpose or role of an entity or behavior within a system, often used in psychology to understand the causes of behavior.

Functional Fixedness

Functional fixedness is a cognitive bias that limits a person to using an object only in the way it is traditionally used, which can hinder the solving of new problems.

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