Capital flight is often caused by

Question

Quizplus · Accepted Answer

Political instability can cause investors to lose confidence in a country's economy, leading them to move their capital to more stable and secure locations. This can result in capital flight as investors and businesses withdraw their funds and investments from the country in question. Political stability, shifts in industry sectors, and IMF policies may also have some impact on capital flight, but are not usually the primary causes.

Capital Flight Is Often Caused by