What economic incentive might countries provide to encourage


Problem

Many less-developed countries suffer at times from "capital flight," as individuals with sufficient income, banks, and large companies convert their domestic assets into foreign currencies. They typically do this to invest or deposit these foreign currencies abroad, usually to escape high inflation, devaluations, and unstable domestic economic, political, and social conditions. What effect does the return of capital flight money to less-developed countries have on exchange rates? Show using a graph. What economic incentives might countries provide to encourage the return of flight capital money and why should they do so?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What economic incentive might countries provide to encourage
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