1. What causes Capital Flight to happen?

According to Mardiani (2014), Capital flight hapenned because inverstors

suddenly lose confidence in the country's economy because of the
devaluation of the currency of the country. Cuddington (Davies, 2010) states
that capital flight happens because investors run from the political and
financial crisis, more massive taxes, capital controls, currency devaluation, or
hyperinflation.

2. Do you think it is better for the government to have more FDI (Foreign Direct
Investment) than FPI (Foreign Portfolio Investment)?
According to Maverick (2020), FPI refers to financial assets such as stocks or
bonds, while FDI refers to establishing direct business interests such as
establishing factories, building warehouses, or buying buildings. So, in my
opinion, the government should have more FDI because it is more permanent
and more difficult to liquidate than FPI, so if the government has more FDI
than FPI, it will not worry about capital flights.

References
Davies, V. A. (2010, April). Capital Flight and Violent Conflict: A Review of the Literature. WORLD
DEVELOPMENT REPORT 2011 , hal. 1-12.

Mardiani, S. E. (2014). Bahasa Inggris Niaga: In Economic erms A to B. Jakarta: Universitas Terbuka.

Maverick, B. J. (2020, July 30). Foreign Portofolio vs. Foreign Direct Inverstment: What's the
Difference? Diambil kembali dari Investopedia:
https://www.investopedia.com/ask/answers/060115/what-difference-between-foreign-
portfolio-investment-and-foreign-direct-investment.asp