ABSTRACT. Fuss and Vermeulen test if during times of adverse cash flow shocks, sensitivity to cash flow is higher. Antràs et al. demonstrate that when firms want to exploit technologies abroad, multinational firm (MNC) activity and foreign direct investment (FDI) flows arise endogenously when monitoring is nonverifiable and financial frictions exist. Gnan and Valderrama explain that globalization includes the liberalization of the international flow of capital. Bhattacharya says that, among country-specific studies on monetary policy frameworks, a study on India would be important.