Capital Fligh t-About Capital Fligh-What is Capital Fligh ?
Capital Flight (Capital Fligh t), also known as capital flight, orCapital transfersRefers to an approach that,Economic crisis,Political unrest,WarAnd other factors, led to its rapid flow of capital abroad, thus avoiding possibleRiskPhenomenon. It is a measure of a country's economic growth in a stable condition, reflecting a country's financial system, potentially an important indicator of crisis proportions. Capital to avoid the outflow of capital within the meaning of the concept itself is not all illegal, under certain political and economic conditions, capital flight is also a legitimate and normal outward investment. In the short run, large-scale evasion of capital will lead to economic chaos and unrest. In the long term, the capital to avoid reducing their amount of capital available, reducing the government from domestic assets can be obtainedTax revenue, An increase of country's external debt burden, which will cause a series of seriousEconomicConsequences.
