Title: Understanding the Flow of Capital and Solving a Currency Exchange Question 1- The Flow of Capital refers to the movement of money or financial assets from one country to another. This movement can occur through various channels such as trade, investments,

In your own words, answer the following questions:
1- In 250 words, discuss the Flow of Capital. (5 marks)
2- Solve the following question. (5 marks)
The price of a tall Starbucks Latte in the US and Mexico is as follows
P = $2 in U.S P* = 16 pesos in Mexico e = 12 pesos per $
A- What is the price of a U.S. latte in pesos?
B- Calculate the real exchange rate.
C- interpret your answer?