Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
A road in Montenegro that opened in 2022 was among the world’s costliest. Its construction was supported by a foreign commercial bank and another multinational company (MNC). This road may help the Montenegro Government achieve its macroeconomic aims and expand Montenegro’s international trade. MNCs can have a major effect on the host countries where they operate.
(a)[2]
Define the term international trade.
(b)[4]
Explain why commercial banks are important to governments.
(c)[6]
Analyse how road construction can help a government meet its macroeconomic aims.
(d)[8]
Discuss whether MNCs are beneficial for host countries.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The movement or exchange of goods and services between countries” …