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International financial flows originate from various sources, including foreign direct investment (FDI), portfolio investment, and remittances. FDI involves investments made by a company or individual in one country in business interests in Another Country, while portfolio investments consist of stocks and bonds traded across borders. Additionally, remittances are funds sent by individuals working abroad back to their home countries, contributing significantly to the financial resources of developing nations. Other sources include international loans, grants, and aid from governments and international organizations.

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