For Developing Countries, One of the Dangers Inherent in the Inflows

question 159

Multiple Choice

For developing countries, one of the dangers inherent in the inflows of capital that finance investment is

• A)increasing unemployment that accompanies foreign investment.
• B)rapid outflows of funds that put pressure on exchange rates.
• C)the deflation that accompanies inflows of foreign capital.
• D)the inflation that accompanies outflows of foreign capital.

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Definitions:

Notice

A formal communication or announcement, often legally required, to inform or alert parties about specific information or intentions.

Pay in Lieu of Notice

A payment made to an employee by an employer instead of giving the employee a required notice of termination.

Self-employed Insurance Broker

An individual who operates their own business selling and advising on insurance policies without being directly employed by an insurance company.

Liability

The legal responsibility for one's acts or omissions, potentially resulting in the requirement to make restitution to affected parties.