Capital flight can impact a country's exchange rates and interest rates, affecting the quantity of equipment sold by a manufacturing equipment exporting firm.
Capital flight in a country can lead to effects such as changes in interest rates and exchange rates. When capital flight occurs, it causes a decrease in the demand for the country's currency, leading to a depreciation of the exchange rate. This depreciation makes imported goods more expensive, potentially reducing the quantity of equipment sold by the firm that exports manufacturing equipment.
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