Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 28

It has been estimated by the United Nations that the total external debt of developing countries has been increasing by about $425 billion each year. What is likely to have contributed to this?

1. Areduced foreign direct investment into the developing country
2. Bincreased government subsidies for tourism in the developing countries
3. Cwithdrawal of multinational companies due to delays in the award of government contracts
4. Dworsening of the current account deficit with developed economies

As printed in the paper