Why are developing countries dependent on export of a few major products particularly vulnerable to corruptions?
Correct answer: B. The revenue arrives in a very concentrated form of large payments oh hard currency
- A. Those exports are typically controlled by a handful of large landowners
- B. The revenue arrives in a very concentrated form of large payments oh hard currency
- C. When the price for those exports drops on the world market, local government officials seek to supplement their income by corrupt means
- D. It is nearly impossible to officially track the value and payment receipts for a few large exports in developing countries
Explanation
A few export commodities can generate very large foreign-currency payments that are difficult to monitor and easy for officials or elites to divert. This concentrated revenue stream creates strong opportunities for corruption.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
Practise International Political Economy
97 free International Political Economy MCQs from International Relations, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask International Relations questions like this
International Relations is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More International Political Economy questions
India's economy was for decades based loosely on:
Which of the following is an accurate statement about patterns of growth in the new century?
The distinctive aspect of the Oxfam model is that:
Which country chartered a company in 1600 to trade with the "East Indies"?
Who was the first permanent English settlement in North America named for?
In 1619, a Dutch ship brought what to British North America for the first time?