Final answer:
Information, physical, and monetary flows move both upstream and downstream in international trade and finance, and they are components of the current account and the financial account in a country's balance of payments.
Step-by-step explanation:
The types of flows that move both upstream and downstream in international trade and finance are information, physical, and monetary flows. An example of information flow can be seen in the exchange of details regarding a product's specifications, shipment tracking, or market demand. Physical flows represent the movement of goods and services across borders, such as the export and import of products. Monetary flows involve the movement of money, which includes payments for imports, receipts from exports, investment returns, and other financial transactions.
An export sale to Germany, for instance, involves a monetary flow from Germany to the U.S. economy (line two). Similarly, importing goods, like oil from the Russian Federation, means a flow of financial payments from the U.S. economy to the Russian Federation (line four). These flows are essential components of the current account and the financial account when examining a country's balance of payments.