Barriers to the international movement of capital

There are many known barriers to the international movement of capital: Political risk; Currency risk; I nformation that is hard to obtain ; Cultural differences. Accordingly, international capital flows are too small, resulting in: Home bias (preference for domestic investments); The misallocation of savings; A global loss of GDP; A slower catch-up process among poorer countries. The international movement of capital must therefore be promoted, provided that it is stable long-term capital flows that finance efficient investments and not unstable speculative capital flows .