Economics 2281 · O Level · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

A multinational company (MNC) wants to invest in a low-income country in order to increase its palm oil production. What is the factor most likely to make this investment feasible?

  • Ahigh cost of clearing forests to increase land for plantations
  • Bincreased demand for palm oil
  • Cshortages of labour in the rural economy
  • Dthe removal of subsidies for palm oil production

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