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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?

  1. AThe company introduces new technology to the economy.
  2. BThe company provides diversification of production for the economy.
  3. CThe company provides skills training for local workers.
  4. DThe company purchases non-renewable local construction materials for the factory.

As printed in the paper

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Correct answer: D. The company purchases non-renewable local construction materials for the factory.

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