Ask Question
12 September, 00:58

Now, suppose that mexico experiences a sudden bout of political turmoil, which causes world financial markets to become uneasy. because people now view mexico as unstable, they decide to pull some of their assets out of mexico and put them into more stable economies. this unexpected shock to the demand for assets in mexico is known as capital flight.

+3
Answers (1)
  1. 12 September, 04:14
    0
    This is a true statement. When assets are lost from a country because of an event that leads to the overall disappearance of wealth from the country, this is the mechanism taking place. After capital flight takes place, it makes it much more expensive for the country to import goods.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Now, suppose that mexico experiences a sudden bout of political turmoil, which causes world financial markets to become uneasy. because ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers