Economics · Oct / Nov 2018 · Paper 12 · Question 28
2281Current account of the balance of payments
What is most likely to happen if South Korea builds a factory in Switzerland that becomes profitable?
- ASouth Korea's imports of goods will decrease.
- BSouth Korea's investment income will increase.
- CSwitzerland's trade balance in goods will worsen.
- DSwitzerland's trade balance in services will improve.
As printed in the paper
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Correct answer: B. South Korea's investment income will increase.
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