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'''Capital flight''' refers to the large-scale movement of capital out of a particular country. It is frequently in response to economic instability and/or perceived risks. Capital flight can involve both legal and illegal transfers of assets, driven by factors like political/economic uncertainty, currency devaluation, or high interest rates in other countries.
'''Capital flight''' refers to the large-scale movement of capital out of a particular country. It is frequently in response to economic instability and/or perceived risks. Capital flight can involve both legal and illegal transfers of assets, driven by factors like political/economic uncertainty, currency devaluation, [[economic sanctions]], or high [[interest rate]]s in other countries.
[[Trade imbalance]]s or [[trade deficit]]s is another form of cross-border capital transfers.
[[Category: Economics]]
[[Category: Economics]]