Question
A country may allow foreign direct investment and
portfolio investment but restrict the repatriation of capital or the issuance of foreign currency-denominated debt. This is an example of __________.Solution
Partial capital account convertibility: In this type of capital account convertibility, certain categories of transactions are allowed, while others are restricted. For example, a country may allow foreign direct investment and portfolio investment but restrict the repatriation of capital or the issuance of foreign currency-denominated debt.
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