Hecksher-Ohlin theory of international trade establishes the differences in countries factors endowment (Edward, 1995). Paul Samuelson also in his specific factors factor theory also acknowledges the differences in resources among countries and noted that these resources are not easily transferable from one country to another (Rogoff, 2005). However in recent time, it been observed that capital, labour and technology do move across national boundaries. Of recent times there is now reliance among nations of the world due to global integration such as EU, ECOWAS, AU, UN etc. This integration has made it easier for the movement of international resources across countries. For example, countries like the United State have allowed the immigration of skilled labour from countries with plentiful supplies of skilled labour.
The movement of productive resources from nations with relative abundance and low remuneration to nations with relative scarcity and high remuneration has a tendency to equalize factor returns internationally and generally increase welfare. This resources moving across international border has been termed as International resources. Over the year, Multinational Corporation has been seen as the important vehicle for the international flow of resources which consist of capital labour and technology (See Dominick, 2013).
1.1 FORM OF INTERNATIONAL RESOURCES FLOW
International resources can flow in any of this form:
i. Portfolio Investment: These are purely financial assets investment such as bonds denominated in a national currency. With bonds, the investor simply lends capital to get fixed payouts or a return at regular interval and then receives the face value of the bond at a pre-specified date. Prior to the world war1, this was the main most efficient way of attracting international resources as these resources were employed for infrastructural development. This kind of investment collapsed after the World War 1 and only...