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

Globalisation, free trade and protection — practice question

What is the most probable outcome if South Korea establishes a factory in Switzerland and it makes a profit?

  • ASouth Korea’s imports of goods will decrease.
  • BSouth Korea’s investment income will increase.
  • CSwitzerland’s trade balance in goods will worsen.
  • DSwitzerland’s trade balance in services will improve.

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