Capital ﬂight is a problem facing DVCs that involves the
A) diﬃculty of sustaining skilled workers in the government sector of the DVC economies.
B) transfer of private savings from DVCs to IACs.
C) ﬂight of agricultural workers from rural to urban areas, especially capital cities, to take advantage of better job opportunities.
D) movement of capital goods from IACs to DVCs to avoid taxes.

Question

Quizplus · Accepted Answer

Capital flight refers to the transfer of private savings from a developing country to an industrialized country. This is a significant problem for DVCs because it deprives them of much-needed capital for development and can exacerbate poverty and inequality. Options A, C, and D are not related to the issue of capital flight.

Capital ﬂIght Is a Problem Facing DVCs That Involves the