Question

The dependence on remittances from abroad makes Kerala's economy vulnerable to:

• A. Fluctuations in global oil prices
• B. Fluctuations in the exchange rate between the Indian Rupee and the currencies of the Gulf countries
• C. Changes in the employment policies and visa regulations of major destination countries
• D. Increased competition for jobs from other South Asian countries in the Middle East

Answer 1

Answer:

A. Fluctuations in global oil prices

• As a large number of Keralites work in the Gulf countries, the economic stability of these regions, which is often tied to oil prices, directly impacts remittance flows.