By giving companies get access to to foreign causes of savings, the internationalisation of capital flows could furthermore alleviate economic constraints which avert companies from buying into in possibly more effective, less environmentally-damaging capital equipment. Indeed, as asserted by OECD (1995b), economic constraints are amidst the most significant obstacles to buying into in environmentally-preferable technology.
In some situations, these constraints have was drawn from from nationwide principles in the direction of foreign capital, for example foreign exchange limits and worldwide borrowing controls. By subjecting companies to foreign shareholder force, cross-border capital flows may furthermore give foreign investors some leverage ...