Note AcademyNote Academy
Start

Economics (AS & A Level) · May / June 2023 · Paper 33 · Question 26

9708Relationship between countries at different levels of development

A multinational company (MNC) shifts its manufacturing capacity to a developing country. What is likely to be the short-run effect of this in the developing country?

  1. Aemployment increases: no; investment increases: no; short-run balance of payments current account improves: yes
  2. Bemployment increases: no; investment increases: yes; short-run balance of payments current account improves: no
  3. Cemployment increases: yes; investment increases: no; short-run balance of payments current account improves: yes
  4. Demployment increases: yes; investment increases: yes; short-run balance of payments current account improves: no

As printed in the paper

Show the answer

Correct answer: D. employment increases: yes; investment increases: yes; short-run balance of payments current account improves: no

Sit this whole paper →More on Relationship between countries at different levels of development

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.