An argument can be made for controls on the outflow of capital for developing countries because capital outflows forces a country to revalue its currency.

Name: An argument can be made for controls on the outflow of capital for developing countries because capital outflows forces a country to revalue its currency.
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Question

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Capital outflows typically lead to a depreciation of a country's currency, not revaluation, as they increase the supply of the local currency in the foreign exchange market.

An Argument Can Be Made for Controls on the Outflow