Question

Kerala's economy is highly dependent on remittances. Which of the following is a potential consequence of this dependence?

• A. Vulnerability to global economic slowdowns
• B. Increased self-sufficiency in agricultural production
• C. A significant decrease in the cost of living for residents
• D. Rapid expansion of the state's manufacturing sector for export

Answer 1

Answer:

A. Vulnerability to global economic slowdowns

• A global economic slowdown, especially in the Gulf region, can negatively impact job opportunities and reduce the flow of remittances, making the economy vulnerable.