Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

Governments in low-income countries often permit foreign multinational companies (MNCs) to extract minerals within their borders. Which trade-off between benefit and cost could this create for the low-income countries?

  • Aimproved balance of trade → training by the MNCs
  • Bhigher employment → loss of a finite resource
  • Cincreased profits for the MNCs → efficient production
  • Dmore sustainable development → economic growth

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