Economics 9708 · AS & A Level · 6.3

6.3 — practice question

In 2004 Bolivia promoted investment from overseas firms to develop oil and gas resources. What effect would this have on Bolivia’s balance of payments?

  • Adefinitely favourable, as Bolivia could increase its exports of gas and oil
  • Bdefinitely unfavourable, as the foreign companies would transfer profits out of the country
  • Cuncertain, as there would be inflows and outflows of currency
  • Dzero, as Bolivia itself would use the gas and oil produced

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