What is a potential major impact of high-interest rates in major developed economies (e.g., USA, EU) on developing countries like Pakistan?

The correct answer to the question "What is a potential major impact of high-interest rates in major developed economies (e.g., USA, EU) on developing countries like Pakistan?" is Option C: Capital outflow as investors seek higher returns in developed markets, potentially devaluing local currencies..

The other options — A) Increased foreign direct investment (FDI) inflows due to attractive returns., B) Reduced cost of borrowing for their governments and businesses., D) Greater access to international credit lines and loans. — are incorrect for this World Current Affairs question. As explained above: High-interest rates in developed economies make investments there more attractive. This can lead to capital flight from developing countries, as investors move funds to seek better returns, putting d…