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Moreover, capital flow allows a country to borrow today in order to improve its ability in the future. However, capital control is necessary such as protecting domestic companies and industries from foreign countries and correcting the imbalance of international payment surplus or deficit. In the following of the article, the author describes the types of capital control: control on inflows or outflows, price (tax) and quantity control within international trades.
The second article shows that the problems with and the problems without capital control. At first, it says about people’s expectation on capital control when it was removed; boost production and productivity, benefit from technology advancement from capital flow and prevent corruption created by capital control...
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