Economics 9708 · AS & A Level · Trade unions

Trade unions — practice question

Which statement does not back the idea that a foreign company extracting mineral resources will make it harder for a developing economy to achieve future economic growth?

  • AExports of these mineral resources will result in an appreciation of the exchange rate.
  • BReduced tax rates aimed at encouraging the foreign company to invest in the country will increase inflation.
  • CThe foreign company will raise the skill levels of the local population through training schemes.
  • DThe foreign company will send profits back to its own country.

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