Company X, a multinational company manufacturing batteries for electric cars, plans to put money into a new factory in country N. In what circumstances would this investment be most likely to raise the current account balance on the balance of payments in country N?
- A% of raw materials used to make batteries supplied by country N: 10; income elasticity of demand for electric cars outside country N: 0.5
- B% of raw materials used to make batteries supplied by country N: 10; income elasticity of demand for electric cars outside country N: 1.5
- C% of raw materials used to make batteries supplied by country N: 90; income elasticity of demand for electric cars outside country N: 0.5
- D% of raw materials used to make batteries supplied by country N: 90; income elasticity of demand for electric cars outside country N: 1.5