When an LDC experiences capital flight,wealthy individuals and firms from within an LDC invest and deposit their monies in overseas ventures and banks in developed countries.

Question

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Capital flight refers to the outflow of financial assets from an LDC to developed countries. This is often driven by wealthy individuals and firms seeking better investment opportunities or a safe haven for their money due to economic or political instability in the LDC. As a result, they invest and deposit their money in overseas ventures and banks in developed countries.

When an LDC Experiences Capital Flight,wealthy Individuals and Firms from Within