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Impact of Chinese Tourism on Capital Flight
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Impact of Chinese Tourism on Capital Flight

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Questions and Answers

What did Ms. Wong compare in her analysis of China's outbound spending?

  • Chinese economic size vs. destination countries' GDP
  • China's GDP vs. travel expenditures in destination countries
  • Visitor numbers vs. balance of payments in China
  • Balance of payments vs. inbound spending in destination countries (correct)

    • Based on the text, what factor contributed to the large gap between China's reported travel expenditure and the level predicted by an economic model?

  • Growth of China's GDP
  • Capital controls tightening
  • Historical travel patterns from China
  • Distance between China and destination countries (correct)

    • What did policymakers do in response to the gap between China's inbound and outbound spending measures?

  • Encouraged more travel spending
  • Revised past economic predictions
  • Deposited funds in Chinese households
  • Strengthened capital controls and reviewed transactions (correct)

    • What is a key reason why many Chinese households may want to diversify their assets, based on the text?

    <p>Accumulated deposits and moribund property market</p> Signup and view all the answers

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