Economics (AS & A Level) · Oct / Nov 2022 · Paper 31 · Question 27
9708Relationship between countries at different levels of development
A developing (low-income) economy is heavily dependent on the production of primary products. A multinational car manufacturing company invests in the country and builds a new factory. What will not be a long lasting benefit of the company's investment in the developing economy?
- AThe company introduces new technology to the economy.
- BThe company provides diversification of production for the economy.
- CThe company provides skills training for local workers.
- DThe company purchases non-renewable local construction materials for the factory.
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Correct answer: D. The company purchases non-renewable local construction materials for the factory.
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