___________ is the flow of private funds abroad because investors believe that the return on investment or the safety of capital is not sufficiently ensured in their own countries.
A)Bartering
B)Money transfer
C)Technology transfer
D)Capital flight
E)Brain drain

Question

Quizplus · Accepted Answer

Capital flight refers to the movement of private funds abroad due to the lack of confidence in the domestic economy's return on investment or capital's safety. Investors usually move their capital away from countries with high political or economic risk factors, including hyperinflation, corruption, unstable governments, or wars. Capital flight leads to reduced foreign investment, increased interest rates, depreciation of the domestic currency, and a decreased ability to fund domestic investment projects, thereby causing significant economic damage to the source country.

___________ Is the Flow of Private Funds Abroad Because Investors