What do you mean by the term capital flight?

Business & Management
#1

A destructive process in which investors (both foreigners and domestic
residents) withdraw their financial capital from a country as a result of what are perceived to be
non-favourable changes in economic policies, political conditions, or other factors. The
consequences of capital flight can include a contraction in real investment spending, a dramatic
depreciation in the exchange rate, and a rapid tightening of credit conditions. Developing
countries are most vulnerable to capital flight