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Economics (AS & A Level) · Oct / Nov 2024 · Paper 33 · Question 28

9708Relationship between countries at different levels of development

What is most likely to result from foreign direct investment in a developing economy?

  1. Aan improvement in the developing economy's trade balance
  2. Ban increase in the developing economy's net investment income
  3. Ca reduction in the developing economy's government tax revenue
  4. Da reduction in wage levels in the developing economy

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Correct answer: A. an improvement in the developing economy's trade balance

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