Vietnam has a large number of female entrepreneurs. Some of these firms have expanded and now compete with foreign multinational companies (MNCs) and public sector firms. The Vietnamese government encourages MNCs to establish themselves in Vietnam as a host country. It also intervenes in the economy to promote the consumption of merit goods.
(a)[2]
Identify two reasons why individuals become entrepreneurs.
(b)[4]
Explain two benefits that an MNC may provide to its host country.
(c)[6]
Analyse how a government could encourage the consumption of merit goods.
(d)[8]
Discuss whether private sector firms are likely to set lower prices than public sector firms.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “To earn a profit or make money” …