In the late 1990s, when foreign investors in Thailand began to realize that Thailand could not maintain its peg to the dollar indefinitely, they began to sell off their investments in Thailand and exchange the baht they received for dollars.This reduction in investment by foreigners is termed

Question

Quizplus · Accepted Answer

The reduction in investment by foreigners due to a loss of confidence in Thailand's ability to maintain its peg to the dollar is known as capital flight. This phenomenon often leads to a sharp depreciation in the value of the local currency and can cause significant economic instability. None of the other options are directly relevant to this scenario.

In the Late 1990s, When Foreign Investors in Thailand Began