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How do remittances affect the global economy_

<br>International remittances are money transactions along the national borders. Why do people send money? This money is sent by migrant settlers, workers and students to their family members residing in the home country.<br>

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How do remittances affect the global economy_

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  1. How do remittances affect the global economy?

  2. International remittances are money transactions along the national borders. Why do people send money? This money is sent by migrant settlers, workers and students to their family members residing in the home country. As more and more people are migrating to developed countries, the average scale of world remittance is ever on the hike. The increase of money transfers in Australia and other countries likewise boosts the global economy.

  3. In some countries, there are even situations where the remittance inflow sometimes exceeds the flows of foreign direct investment (FDI) upon calculating the national budget. India, China, the Philippines, Pakistan, Mexico etc. are among the developing countries that receive the largest remittances across the globe.

  4. Merits of remittances on economies Enhancing Family Standards: Families are the direct recipients of remittances. As a result, there are lower risks of money wastage or political corruption, as in the case of foreign investments. ● Thus, it helps the country economy by dropping the poverty level and enhancing familys’ living standards.

  5. Increased savings: For the countries with low income and higher levels of unemployment, remittances often become the key source of savings. ●

  6. Liquidity of Financial Markets: With the rising liquidity in the finance sector due to remittances, there will be a considerable amount of decrease in the interest rate. ● As the interest rates fall, the expansion of credit and investment in developing countries happens simultaneously.

  7. Business Investments: Foreign settlers often fund their relatives and friends for business start-ups. There are even higher chances that they themselves transfer money to buy a shop to start a business upon retirement into their nation. The more entrepreneurs bloom, the more positive impact it has on a country’s economy. ●

  8. Here is how a country’s economy, as well as the global economy, get boosted with international remittances. Conduct overseas money transactions at the best online money transfer in Australia and grant your own piece of contribution to the economy of your home country and thereby to the economy of the world.

  9. THANK YOU

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