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Zorluk: OrtaObstacles to Economic Development in Developing Nations

In many developing economies, domestic capital accumulation is severely restricted when wealth holders continuously transfer their financial assets to foreign jurisdictions due to political instability or inflation. Which obstacle to economic development does this practice directly represent?

  1. Capital flightCevap
  2. B
    Import substitution
  3. C
    Commercialization of public enterprises
  4. D
    Progressive income taxation

Cevap

Capital flight is the correct answer because it directly describes the rapid outflow of financial assets and domestic savings from a developing country to foreign markets.
Capital flight directly deprives developing nations of domestic savings and investment funds. When financial capital leaves the country, it widens the savings-investment gap, restricts infrastructural growth, and increases reliance on foreign borrowing.

Adım Adım Çözüm

1
Analyze the scenario described in the stem.
The prompt describes domestic wealth holders transferring financial capital out of the country into foreign banks or assets.
Identifying the core economic behavior in the scenario helps isolate the correct development obstacle.
2
Evaluate the economic term that matches this financial outflow.
Capital flight is the recognized term for the movement of financial resources out of a developing nation due to economic or political uncertainty.
Capital flight directly lowers national savings, exacerbates capital scarcity, and impairs real capital formation in developing nations.

Anahtar Kavram

Capital Flight as a Barrier to Capital Formation
Tahmini Süre:1m 0s
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Konular

Obstacles to Economic Development in Developing Nations