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Economics · May / June 2022 · Paper 11 · Question 25

2281Globalisation and trade restrictions

The governments of low-income countries often allow foreign multinational companies (MNCs) to mine minerals in their country. Which conflict between benefit and cost might this cause the low-income countries?

  1. Aimproved balance of trade / training by the MNCs
  2. Bhigher employment / loss of a finite resource
  3. Cincreased profits for the MNCs / efficient production
  4. Dmore sustainable development / economic growth

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Correct answer: B. higher employment / loss of a finite resource

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