Emerging Markets and Developing Economies May Have to Raise Domestic

question 48

Multiple Choice

Emerging markets and developing economies may have to raise domestic rates of interest suddenly if:

• A) the supply of money unexpectedly drops.
• B) the IMF calls in loans with no warning.
• C) the risk premium for its currency rises dramatically.
• D) domestic investors wish to repatriate their profits earned overseas.

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Definitions:

International Union Federation

An organization that represents and unites trade unions from different countries around the globe, working on common issues affecting workers.

Union Organizing

The process by which workers band together to form a labor union in order to collectively negotiate with their employer over wages, benefits, and conditions.

Differentiation Strategy

A business tactic that involves distinguishing a product or service from competitors through unique features, quality, or customer service to attract a specific target market.

Human Resource Management

The strategic approach to the effective management of people in a company or organization in a way that helps their business gain a competitive advantage.