Capital Flight The action of investors moving their securities out of a particular country because of a fear of country-specific risks or political instability, or because of the lure of higher returns in a different country. Investopedia Says: A capital flight may occur from countries that investors believe to have high inflation or other unnecessary country-specific risks that offer only a small chance of a higher investment return. Related Terms: Capital Country Risk Inflation Political Risk Return Return On Investment - ROI Risk/Return Trade-off Systematic Risk Unsystematic Risk |