Capital Outflow
Definition of 'Capital Outflow'The movement of assets out of a country. Capital outflow is considered undesirable and results from political or economic instability. It occurs when foreign and domestic investors sell off their assets in a particular country because they no longer perceive it as a safe investment. The capital is withdrawn from the country (flows out) and may end up in another country or back in the investor's home country. |
|
Investopedia explains 'Capital Outflow'Some countries implement capital controls to curb capital outflows. These controls are not really a solution because they can scare off investors who want control over their assets and can give the impression that something is wrong with the country's economy or government that is not yet widely known. |
Related Definitions
Articles Of Interest
-
Working Capital Works
A company's efficiency, financial strength and cash-flow health show in its management of working capital. -
Dual And Multiple Exchange Rates 101
Why would a country choose to implement dual or multiple exchange rates? It's risky, but it can work. -
What Causes A Currency Crisis?
Find out what can cause a currency to collapse and what central banks can do to help. -
The Impact Of Currency Conversions
Will a rising or falling dollar hurt you or your company? In this article we explore the impact of currency converisons on consumers, comanies, and countries. -
Tariffs
Tariffs, or customs duties, are taxes imposed on foreign goods and services. In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported ... -
Exploring The Current Account In The Balance Of Payments
Learn how a country's current account balance reflects the country's economic health. -
What Is The Balance Of Payments?
The balance of payments helps countries to track how much money is coming in and how much money is going out. Learn more about BOPs here. -
Economic Indicators That Do-It-Yourself Investors Should Know
Understanding these investing tools will put the market in your hands. -
Can't Get A Bank Loan? Turn To Your Neighbor
Peer-to-peer lending can be an inexpensive way to gain access to credit when banks are restricting lending -- but you need to understand the entire deal first before jumping in. -
Why The Consumer Price Index Is Controversial
Find out why economists are torn about how to calculate inflation.
Free Annual Reports