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Economic Vulnerability

An infographic illustrating economic vulnerability in developing countries, showcasing debt, climate crisis, and supply chain connections, with a world map background

Economic Vulnerability Quiz

Test your knowledge on the dynamic challenges faced by low-income countries in today's economic landscape. Explore the connections between debt crises, climate issues, and supply chain failures.

  • Understand the impacts of global crises on developing nations.
  • Learn how small businesses cope with rising debt and inflation.
  • Evaluate potential solutions to prevent supply chain collapses.
18 Questions4 MinutesCreated by AnalyzingEconomics42
Why are many low-income countries at risk of both debt and climate crises?
Over 70% of public climate finance takes the form of debt and is primarily channeled into climate mitigation.
Developing countries’ ability to cope is impaired by growing debt burdens.
Inflation causes developing economies to take on more debt.
Most of the money given by creditors goes towards the development of public infrastructure.
How long did it take Greece economy to recover?
About 5 Years
About a decade
It still hasn’t
2 years
Why are small businesses especially affected by debt crises? +
They are in danger of being unable to pay their debts because of rising interest rates.
They can’t find employees due to high unemployment rates.
The rising price of energy makes production more expensive.
The application for a government grant takes to long to save many businesses.
Has the Pandemic made the financial situation worse?
Yes, but we now know about the weaknesses and can make the system more resilient.
Yes, even rich nations will have problems to cushion the next global crisis with debt.
No, during the pandemic debt was relieved, the inflation came after.
Yes, because of the rising inflation, countries cannot pay their debts anymore.
What do you think happened during the pandemic?
Almost no private creditor suspended any interest payments during the pandemic.
Along with creditor countries, private creditors suspended several debts for countries in debt distress.
Rich nations offered to suspend interest payments until June 2021.
The World Bank participated in the interest suspension for distressed countries.
What are high risks of supply chain failure?
Terrorism
Political and governmental changes
Economic instability
Human error/accidents
What are consequences of supply chain collapses?
What departments are interconnected with debt crisis AND supply chain collapse?
Failure to stabilize price trajectories
Collapse or lack of public infrastructure and services
Prolonged economic downturn
Employment crisis
All of them
Which countries do you think are trying to increase their soft power by leveraging debts over poorer countries?
Which of the following are true?
Grants will help countries in debt distress recover.
Debt for should be made affordable for climate-positive adaption.
Write-downs and conditional grants will be more common for social development linked debts.
Private creditors play a large role in a bankrupt country’s recovery.
What can cause supply chain collapses besides the ones we have already mentioned?
In order to avoid supply chain collapse would it help to…
€� storage a wide range of raw materials and be able to have access to them in times of shortage
€� focus on one supplier and cut off previous
€� start a second business producing materials you need and be your own supplier
€� own a large shares of stocks in shipping companies to be able to put pressure on them in times of supply chain collapses
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