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Civilization II Hints
Palace
Building the Palace improvement in any city relocates your capital to that city. There are really very few reasons to do this. One reason (not a very good though) would be if you were ruling under a form of government that still allowed for corruption and you palace was not very centrally located. Relocating it to the center of your empire or in the midst of your largest trade producing cities could help you with this problem. I would not really recommend doing this though. You have better things to spend your resources on and you could simply switch to Communism or Democracy. The other, more reasonable excuse for moving your capital is to protect it or your spaceship. If your capital is in danger of being captured, quickly move it to safe territory, because if you lose it corruption will run rampant throughout your entire civilization and you spaceship (if you have one) will be destroyed.