Capital flight from a country enhances its ability to service debt and pay for imports.

Question

Quizplus · Accepted Answer

Capital flight refers to the outflow of financial assets from a country, which can result in a shortage of foreign currency and a decline in the country's financial stability. This can negatively impact the country's ability to service debt and pay for imports. Therefore, capital flight does not enhance a country's ability to service debt and pay for imports.

Capital Flight from a Country Enhances Its Ability to Service