Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 30

9708Relationship between countries at different levels of development

If a country succeeds in attracting foreign direct investment in a single year, what is the result on its balance of payments in the short run and long run?

Ashort run: a credit in the current account; long run: a debit in the financial account
Bshort run: a debit in the current account; long run: a credit in the financial account
Cshort run: a credit in the financial account; long run: uncertain in the current account
Dshort run: uncertain in the financial account; long run: a credit in the current account

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Correct answer: C. short run: a credit in the financial account; long run: uncertain in the current account

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