Economics 9708 · AS & A Level · Monopolistic competition

Monopolistic competition — practice question

When a multinational company (MNC) relocates its production capacity to a developing country, what is likely to happen in the short run in that developing country?

  • 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 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 no

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