Economics 9708 · AS & A Level · 6.3

6.3 — practice question

When world demand for oil was very strong, Bolivia promoted investment from foreign companies so that its oil and gas resources could be developed. What overall 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

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI