A Developing Economy Is Considering Restricting the Amount of Money

question 97

Multiple Choice

A developing economy is considering restricting the amount of money its citizens can invest abroad. What might the purpose of this restriction be?

• A) to increase the dependency of the economy on developed economics
• B) to increase capital formation by forcing its citizens to invest in their own country
• C) to reduce the nation's trade deficit so that interest rates will be reduced and capital formation will increase
• D) to increase the degree of equality in the income distribution

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Definitions:

Benchmarking

The process of comparing key points within your business with comparable points in another external entity.

External Entity

An organization, group, or individual that exists outside of the company and interacts with the business through transactions, partnerships, or other forms of engagement.

Total Quality Management

A methodology that emphasizes the importance of organizational culture in achieving long-term success through customer satisfaction and continuous improvement.

Feedforward Control

A management strategy that anticipates problems before they occur by monitoring inputs and taking preventative measures.