Economics 9708 · AS & A Level · 6.3

6.3 — practice question

The United Nations has estimated that the total external debt of developing countries has been rising by about $425 billion each year. Which factor is least likely to have played a part in this?

  • Adisincentives for foreign direct investment through political instability
  • Bincreased government subsidies for the development of tourism industries
  • Cwithdrawal of multinational companies due to delays in the award of government contracts
  • Dworsening of the terms of trade with partners in developed economies

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