The extent to which capital can be shifted between different uses, and in particular between different countries. This is restricted in various ways. Capital in use may be entirely sunk, or it may be possible to withdraw it from its present use only gradually, as existing equipment wears out. Capital mobility is hindered by asymmetric information: investors do not have sufficient information, or sufficient confidence that such information as they have is reliable, about opportunities in different industries or foreign countries. International capital mobility is frequently limited by government controls, in both capital-importing and capital- exporting countries. Economic groupings such as the European Union (EU) have tried to increase capital mobility between their members, but not with complete success.

See also:

perfect capital mobility

• constant prices
• constant returns
• constrained maximum
• constrained minimum
• constraint
• consultant
• consumer
• consumer behaviour
• consumer borrowing
• consumer choice
• consumer confidence
• consumer credit
• consumer debt
• consumer durables
• consumer expenditure
• consumer goods
• consumerism
• consumer non-durables
• consumer price index
• consumer protection
• consumer rationality
• consumer sovereignty
• consumer surplus
• consumption
• consumption externality