Which statement about capital mobility is true? A. It helps both rich and poor countries
B. It helps countries that wish yo remain economically independent
C. It only helps economically stabilized countries
D. It only helps preindustrialized countries

A. It helps both rich and poor countries

Explanation:

Capital Mobility refers to the easy movement of money or other forms of capital across different different countries with little to no transaction costs. A lot of research have centered on whether Capital Mobility helps the Economies of both rich and poor nations with the general consensus being that it does indeed help both but with varying degrees.

Poorer countries are able to get capital that is needed for investment and growth. Even though this is helpful, should the capital come from richer countries, profits will go back to them as well leaving the Poorer countries unable to enjoy the profits. With capital mobility though, remittances to poorer countries from their citizens in richer countries will be easier.

Richer countries however will enjoy capital mobility as it usually means that more money is flowing into them than out due to their stable economies and investment opportunities.

for starters, there is the structural trend of rising primary government expenditure as a share of gdp, which reached 36% in 2014, up from 22% in 1991. this increase reflected a political desire to address the poverty and inequality that had gone unaddressed during previous decades. to support the increase, brazil’s government increased taxes on consumption and promoted progress toward labor-market formalization. nonetheless, public investment, particularly in infrastructure, took a hit. in fact, with the exception of the 2005-2008 period, total investment as a share of gdp has remained below 20% since 1991.