Relationship between countries at different levels of development
11.5What the syllabus asks of you
- international aid: forms of aid
- international aid: reasons for giving aid
- international aid: effects of aid
- international aid: importance of aid
- trade and investment
- role of multinational companies (MNCs): definition of MNC
- role of multinational companies (MNCs): activities of MNCs
- role of multinational companies (MNCs): consequences of MNCs
- Foreign Direct Investment (FDI): definition of FDI
- Foreign Direct Investment (FDI): consequences of FDI
- external debt: causes of debt
- external debt: consequences of debt
- role of the International Monetary Fund (IMF)
- role of the World Bank
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Every question on Relationship between countries at different levels of development, untimed, marked as you go.
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37 questions
1May / June 2026 · Paper 31 · Q27Show mark scheme →
Abuying better fertilisers and machines for growing coffee beans
Bpaying higher wages to the workers growing coffee beans
Cproviding better housing for workers growing coffee beans
Dsetting up a buffer stock scheme for coffee bean farmers
Mark scheme
2May / June 2026 · Paper 32 · Q30Show mark scheme →
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
Mark scheme
3May / June 2026 · Paper 33 · Q27Show mark scheme →
Abuying better fertilisers and machines for growing coffee beans
Bpaying higher wages to the workers growing coffee beans
Cproviding better housing for workers growing coffee beans
Dsetting up a buffer stock scheme for coffee bean farmers
Mark scheme
4May / June 2026 · Paper 34 · Q28Show mark scheme →
Areduced foreign direct investment into the developing country
Bincreased government subsidies for tourism in the developing countries
Cwithdrawal of multinational companies due to delays in the award of government contracts
Dworsening of the current account deficit with developed economies
Mark scheme
5May / June 2026 · Paper 34 · Q29Show mark scheme →
Ato increase the growth of international trade
Bto promote exchange rate stability
Cto provide funds to low income countries in order to reduce poverty
Dto provide resources to members having difficulties with the balance of payments
Mark scheme
6Oct / Nov 2025 · Paper 31 · Q26Show mark scheme →
AA firm that avoids paying indirect taxes.
BA firm that conducts operations in different countries.
CA firm that experiences diseconomies of scale at low levels of output.
DA firm that trades internationally.
Mark scheme
7Oct / Nov 2025 · Paper 31 · Q28Show mark scheme →
Ato ensure that exchange rate systems are working efficiently
Bto help countries enter international markets where trade barriers exist
Cto offer short-term assistance to countries with balance of payments problems
Dto provide low-interest loans to developing countries for infrastructure projects
Mark scheme
8Oct / Nov 2025 · Paper 33 · Q27Show mark scheme →
Agrant — purchase of agricultural machinery
Bgrant — payment of food subsidies
Cloan — purchase of agricultural machinery
Dloan — payment of food subsidies
Mark scheme
9Oct / Nov 2025 · Paper 34 · Q28Show mark scheme →
Aacquiring improved technology
Bbetter training for the workforce
Cextra tax revenue for the government
Dincreased competition for small domestic producers
Mark scheme
10Oct / Nov 2025 · Paper 34 · Q30Show mark scheme →
AIt encourages competition, reduces prices and forces the less efficient domestic firms to leave the market.
BIt brings workers from its own country and provides only low paying jobs to low skilled local workers.
CIt is usually withdrawn quickly in case of a global crisis, making developing countries more vulnerable to global shocks.
DIts actions often result in environmental degradation, and over exploitation of natural resources.
Mark scheme
11May / June 2025 · Paper 31 · Q28Show mark scheme →
Ato encourage exchange rate stability
Bto provide financial assistance for a country with failed economic policies
Cto provide funds for a water purifying plant in a developing country
Dto provide loans for countries following a natural disaster
Mark scheme
12May / June 2025 · Paper 33 · Q28Show mark scheme →
Ato encourage exchange rate stability
Bto provide financial assistance for a country with failed economic policies
Cto provide funds for a water purifying plant in a developing country
Dto provide loans for countries following a natural disaster
Mark scheme
13May / June 2025 · Paper 34 · Q30Show mark scheme →
Aexchange rate of low-income countries
Bfinancial account of the balance of payments of low-income countries
Cpolitical relationships between high-income and low-income countries
Dreserves of foreign currencies held by low-income countries
Mark scheme
14Feb / March 2025 · Paper 32 · Q29Show mark scheme →
Afacilitating free trade among member countries
Bproviding assistance to member countries to plan fiscal policies
Cproviding bailout packages to countries facing external account challenges
Dproviding monetary assistance to member countries to build infrastructure
Mark scheme
15Feb / March 2025 · Paper 32 · Q30Show mark scheme →
ACapacity to benefit from transfer of communications technology has increased.
BInvestment in infrastructure has created transport links and port facilities.
COver-reliance on technical assistance has impaired local initiatives and innovation.
DProjects for education and training have helped to enhance the supply side.
Mark scheme
16Oct / Nov 2024 · Paper 31 · Q28Show mark scheme →
Afood aid in the event of natural catastrophes such as severe drought
Bgrants that are tied to purchasing donor country goods
Cloans that are repaid over a long period at a low rate of interest
Dtechnical assistance using highly skilled worker transfers to provide support
Mark scheme
17Oct / Nov 2024 · Paper 32 · Q28Show mark scheme →
A10; 0.5
B10; 1.5
C90; 0.5
D90; 1.5
Mark scheme
18Oct / Nov 2024 · Paper 33 · Q28Show mark scheme →
Aan improvement in the developing economy's trade balance
Ban increase in the developing economy's net investment income
Ca reduction in the developing economy's government tax revenue
Da reduction in wage levels in the developing economy
Mark scheme
19May / June 2024 · Paper 31 · Q27Show mark scheme →
Aa decrease in advancements in technology
Ba decrease in foreign direct investment
Can increase in exports
Dan increase in unemployment
Mark scheme
20May / June 2024 · Paper 32 · Q28Show mark scheme →
Acurrent account improves; financial account improves
Bcurrent account improves; financial account worsens
Ccurrent account worsens; financial account improves
Dcurrent account worsens; financial account worsens
Mark scheme
21May / June 2024 · Paper 33 · Q27Show mark scheme →
Aa decrease in advancements in technology
Ba decrease in foreign direct investment
Can increase in exports
Dan increase in unemployment
Mark scheme
22Oct / Nov 2023 · Paper 33 · Q23Show mark scheme →
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.
Mark scheme
23Oct / Nov 2023 · Paper 33 · Q28Show mark scheme →
Ato advise countries that are experiencing trade disagreements
Bto help charities providing emergency assistance to countries in need
Cto offer short-term assistance to countries with balance of payments problems
Dto provide interest-free credit to developing countries for infrastructure purposes
Mark scheme
24Oct / Nov 2023 · Paper 33 · Q30Show mark scheme →
Aif the country creates genuine independence for their central bank
Bif the country embarks on a programme of privatisation
Cif the country lacks well-developed infrastructure
Dif the country permits repatriation of profits
Mark scheme
25May / June 2023 · Paper 31 · Q26Show mark scheme →
Aemployment increases: no; investment increases: no; short-run balance of payments current account improves: yes
Bemployment increases: no; investment increases: yes; short-run balance of payments current account improves: no
Cemployment increases: yes; investment increases: no; short-run balance of payments current account improves: yes
Demployment increases: yes; investment increases: yes; short-run balance of payments current account improves: no
Mark scheme
26May / June 2023 · Paper 32 · Q19Show mark scheme →
Aassisting low-income countries to overcome foreign exchange shortages by writing off debts
Benabling low-income countries to undertake capital projects for supplies of clean water through financial aid
Chiring mainly labour from low-income countries to build infrastructure in the Middle East
Dreducing exports of fuels to low-income countries to lower pollution of the environment
Mark scheme
27May / June 2023 · Paper 33 · Q26Show mark scheme →
Aemployment increases: no; investment increases: no; short-run balance of payments current account improves: yes
Bemployment increases: no; investment increases: yes; short-run balance of payments current account improves: no
Cemployment increases: yes; investment increases: no; short-run balance of payments current account improves: yes
Demployment increases: yes; investment increases: yes; short-run balance of payments current account improves: no
Mark scheme
28Oct / Nov 2022 · Paper 31 · Q27Show mark scheme →
AThe company introduces new technology to the economy.
BThe company provides diversification of production for the economy.
CThe company provides skills training for local workers.
DThe company purchases non-renewable local construction materials for the factory.
Mark scheme
29Oct / Nov 2022 · Paper 32 · Q18Show mark scheme →
AExports of these mineral resources will result in an appreciation of the exchange rate.
BReduced tax rates aimed at encouraging the foreign company to invest in the country will increase inflation.
CThe foreign company will raise the skill levels of the local population through training schemes.
DThe foreign company will send profits back to its own country.
Mark scheme
30Oct / Nov 2022 · Paper 32 · Q20Show mark scheme →
AIt does not finance a long-term investment programme.
BIt does not incur payment of interest.
CIt is not supplied by a government.
DOnly countries in Asia and Africa are classified as developing.
Mark scheme
31May / June 2022 · Paper 31 · Q27Show mark scheme →
Aforeign direct investment: no; official development assistance: no; portfolio investment flows: yes
Bforeign direct investment: no; official development assistance: yes; portfolio investment flows: no
Cforeign direct investment: yes; official development assistance: no; portfolio investment flows: yes
Dforeign direct investment: yes; official development assistance: yes; portfolio investment flows: no
Mark scheme
32May / June 2022 · Paper 33 · Q27Show mark scheme →
Aforeign direct investment: no; official development assistance: no; portfolio investment flows: yes
Bforeign direct investment: no; official development assistance: yes; portfolio investment flows: no
Cforeign direct investment: yes; official development assistance: no; portfolio investment flows: yes
Dforeign direct investment: yes; official development assistance: yes; portfolio investment flows: no
Mark scheme
33Feb / March 2022 · Paper 32 · Q20Show mark scheme →
Aimproved health and safety standards for workers
Bincreased import quotas
Cincreased spending on infrastructure
Dintroducing a minimum wage
Mark scheme
34Oct / Nov 2021 · Paper 31 · Q23Show mark scheme →
Aderegulation of agricultural markets
Bextension of food subsidies
Cnationalisation of water supply
Drestrictions and regulations on the flow of international capital
Mark scheme
35Oct / Nov 2021 · Paper 31 · Q28Show mark scheme →
Abilateral aid
Bdebt relief
Cmultilateral aid
Dtied aid
Mark scheme
36May / June 2021 · Paper 32 · Q20Show mark scheme →
Aa government official taking a bribe for special treatment for the person offering the bribe
Ba land owner renting a field to a farmer
Ca landlord being paid for the hire of a room
Dan entrepreneur earning a reward for setting up a firm that pays low wages
Mark scheme
37May / June 2021 · Paper 32 · Q27Show mark scheme →
Abilateral
Bmultilateral
Cproject
Dtied
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