Turkey’s birth rate is declining, so the supply of labour is likely to shrink. Even so, better labour quality and the growing number of foreign multinational companies (MNCs) operating in Turkey (the host country to the MNCs) may enable the economy to avoid a recession. Economists are also concerned that a recession could happen because interest rates are expected to rise.
(a)[2]
Define birth rate for a population.
(b)[4]
Explain two factors that can raise the quality of labour in a country.
(c)[6]
Analyse how an increase in the interest rate might trigger a recession.
(d)[8]
Discuss whether MNCs improve the economic performance of the host countries where they operate.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Births for every $1000$ people in the population” …