Economics · Oct / Nov 2017 · Paper 13 · Question 13

Private multinational clothing companies operate in developing countries to reduce their average costs of production. Which feature of developing countries attracts them for this purpose?

1. AIn developing countries, clothing workers receive low wages.
2. BIn developing countries, foreign managers are allowed to pay no income tax.
3. CIn developing countries, multinationals are allowed to take profits out of the country.
4. DIn developing countries, there is a large market for fashion clothing.

As printed in the paper