Economics · May / June 2021 · Paper 12 · Question 2
2281Globalisation and trade restrictions
A multinational company (MNC) wishes to invest in a low-income country to expand its palm oil production. What is most likely to make this investment possible?
- Ahigh cost of clearing forests to increase land for plantations
- Bincreased demand for palm oil
- Cshortages of labour in the rural economy
- Dthe removal of subsidies for palm oil production
As printed in the paper
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Correct answer: B. increased demand for palm oil
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