What is political instability on economy?

Political instability refers to a situation where a country's political environment is uncertain or volatile, often characterized by frequent changes in government, political unrest, violence, or lack of consensus among political leaders. This can have a significant impact on the economy of a country in several ways:

1. Investment and business confidence: Political instability can lead to a lack of confidence among investors and businesses, resulting in reduced investment and economic growth. Uncertainty about government policies and the overall political climate can deter both domestic and foreign investors from making long-term commitments.

2. Economic policy uncertainty: Political instability can also lead to frequent changes in economic policies, which can create uncertainty for businesses and investors. This can make it difficult for businesses to plan for the future and can lead to inefficiencies in the economy.

3. Currency depreciation: Political instability can lead to a loss of confidence in the country's currency, resulting in depreciation. This can lead to higher inflation, reduced purchasing power, and increased costs for businesses that rely on imports.

4. Capital flight: Political instability can also lead to capital flight, as investors and businesses move their money out of the country in search of more stable and secure investment opportunities. This can further weaken the country's economy and lead to a decrease in foreign exchange reserves.

Overall, political instability can have a negative impact on the economy by creating uncertainty, reducing investment and business confidence, and leading to currency depreciation and capital flight. It is important for countries to address political instability in order to create a stable and conducive environment for economic growth and development.

Skip to main content

Side panel

1

AM





CMH1503-24-S1

Welcome Message

Assessment 2



QUIZ

Assessment 2

Open course index

Open block drawer

Back

Question 1

Answer saved

Marked out of 1.00

Flag question

Question text

Indicate the description that best fit the component “EXPOSURE” of the D-R-S-E-E-A (Driving force, Pressure, State, Exposure, Effect and action) framework.

a.

The concept refers to for example the people living next to a coal- fired power plant

b.

High percentage of pollutants in drinking water

c.

An increase in the number of vehicles on the rounds in a province

d.

Factors such as population growth that motivate environmental processes

Clear my choice

Question 2

Not yet answered

Marked out of 4.00

Flag question

Question text

MATCH THE PHYSIOLOGIC EFFECTS TO THE TYPE OF PARTICULATES AND POLLUTANT GASES IN THE ENVIRONMENT.

Increased the risk for bronchitis in asthmatic children
Answer 1Choose...CFCs aerosolNitrogen dioxideCarbon monoxideSulphur dioxide
Restricts oxygen uptake causing headaches
Answer 2Choose...CFCs aerosolNitrogen dioxideCarbon monoxideSulphur dioxide
Destroys the Ozone layer enhancing skin cancers
Answer 3Choose...CFCs aerosolNitrogen dioxideCarbon monoxideSulphur dioxide
Acid rain and respiratory problem
Answer 4Choose...CFCs aerosolNitrogen dioxideCarbon monoxideSulphur dioxide

Question 3

Not yet answered

Marked out of 1.00

Flag question

Question text

Indicate the description that best fit the component “STATE” of the D-R-S-E-E-A (Driving force, Pressure, State, Exposure, Effect and action) framework.

a.

High percentage of pollutants in drinking water

b.