Final answer:
Economic leakage refers to the flow of money or resources out of a local economy or country due to activities such as tourism and investments. It can impact the economy by diverting resources away from the local community. This can occur when citizens of a country travel to other countries for various purposes, including pleasure, business, education, or investment.
Step-by-step explanation:
Economic leakage refers to the flow of money or resources out of a local economy or country. It can occur in various forms, such as when citizens of a country travel to other countries for pleasure, business, education, or investment purposes. For example, when U.S. tourists leave to visit other countries, their spending may benefit the economy of the destination country instead of their own. Similarly, when U.S. investors make foreign direct investments in other countries, the profits generated may not circulate back into the U.S. economy.