JonesLangLasalle (JLL) is one of top 3 brokerage firms worldwide. Their research department excels at documenting cross-border capital flows. In the middle of the last decade they introduced an important methodological innovation, meant to alleviate one of the “deficiencies” in RCAnalytical’s discussed in this module’s Discussion Thread #1. For a few years JLL became famous for this cross-border capital flow chart:
cross-border capital flows
Please familiarize yourself with the visualization and the data, then address and discuss the following questions:
What exactly is the source of funds called “Global” (in the lower left-hand corner of the chart).
What exactly is meant by the capital flows of $3.0 billion and $1.9 billion (red arrows)? Is $3.0 billion the amount US investors have invested in Europe, while $1.9 billion is the amount Europeans have invested in the US during the first quarter of 2016?
Why are there no capital flow-representing arrows from or into Africa?
What is the amount US investors have invested in Europe?
Why are there no arrows into or out of South America?
What is the total amount Asian Pacific Investors have invested abroad?
Finally, why do you think JLL is no longer using the visualization?