Economic Impact

• Loss of Revenue for the Host Country: When profits are continually extracted and not reinvested, local economies miss out on potential growth opportunities, such as infrastructure development and job creation.
• Economic Dependency: Over time, nations may become financially reliant on foreign corporations. This reliance can limit their economic sovereignty and policy-making capabilities.
• Currency Fluctuation: Massive repatriations can influence currency demand and supply dynamics. In certain instances, this can lead to currency devaluation, making imports more expensive for the host country.