Currency appreciation driven by strong export demand for resources makes other segment of the economy globally uncompetitive. This is known as:

A. resource curse.
B. Dutch disease.
C. currency curse.

Correct Answer: B

The term "Dutch disease" originates from a crisis in the Netherlands in the 1960s that resulted from discoveries of vast natural gas deposits in the North Sea. The newfound wealth caused the Dutch guilder to rise, making exports of all non-oil products less competitive on the world market.