Economics (AS & A Level) · Oct / Nov 2023 · Paper 33 · Question 23
9708Relationship between countries at different levels of development
South Africa has attempted to improve the level of economic growth by attracting foreign direct investment (FDI). [Diagram: two line graphs, 'FDI' (% of GDP against year, 2008-2018) and 'GDP growth' (% of GDP against year, 2008-2018)] What can be deduced from this diagram about the relationship between FDI and GDP growth between 2008 and 2018?
- AThe relationship between level of FDI and GDP growth is generally weak.
- BIncreases in FDI are in line with improvements in GDP growth.
- CLowering FDI is linked to stable GDP growth.
- DNegative GDP growth is linked to a lack of inflows of FDI.
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Correct answer: A. The relationship between level of FDI and GDP growth is generally weak.
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