Difference between revisions of "Capital flight"

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(In economics and business, capital refers to resources used to produce other goods and services, ultimately generating revenue or income. It can be financial, like money, or physical, such as equipment or buildings)
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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, [[economic sanctions]], or high [[interest rate]]s 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.  
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[[Trade imbalance]]s or [[trade deficit]]s is another form of cross-border capital transfers.
 
  
  
 
[[Category: Economics]]
 
[[Category: Economics]]

Revision as of 18:51, May 11, 2025

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 rates in other countries.