Speech Case

In the speech, Dr. Bent discussed many issues related to his researches about benefits of foreign investment. He mentioned about some types of benefits that included diversification finance and develop finance. The problem of diversification finance is questioned that perfect risk sharing can never happen - why work if income not related to effort? Meanwhile, the problem of develop finance is over investment (due to implicit government guarantees). Also, he discussed about potential dark sides of capital flows. Mergers may lead to market power (monopoly). For bank, "too big to fail" is a serious problem. Capital flows may feed corruption.

In the speech, Dr. Bent discussed many issues related to his researches about benefits of foreign investment. He mentioned about some types of benefits that included diversification finance and develop finance. The problem of diversification finance is questioned that perfect risk sharing can never happen - why work if income not related to effort? Meanwhile, the problem of develop finance is over investment (due to implicit government guarantees). Also, he discussed about potential dark sides of capital flows. Mergers may lead to market power (monopoly). For bank, "too big to fail" is a serious problem. Capital flows may feed corruption.