Explain what is meant by capital flight. How would you ...

[armygirl]

Explain what is meant by capital flight. How would you distinguish capital flight from the normal desire of investors to diversify their portfolios by investing abroad?
 
  What will be an ideal response?

Question 2

What three factors distinguish models of endogenous growth from their neoclassical counterparts?
 
  What will be an ideal response?

[mrphibs]

Answer to Question 1

Students should show that they understand capital flight as discussed in the chapter.

Answer to Question 2

There are increasing returns to capital investment (as opposed to decreasing), there are increasing returns to scale (as opposed to constant), and externality effects are included.

[armygirl]

Gracias!

[steff9894]

Thanks for the timely response, appreciate it