In the 48 countries with the lowest Human Development Index (HDI) scores, 28 million people work overseas. A portion of what they earn is saved and then sent to relatives back home. Studies indicate that families mainly spend most of this transferred money on food and housing, which improves their living standards. In 2013, the total value of these remittances was twice the amount of foreign direct investment received by these countries.
(a)[2]
As people become richer, how do the amount and the proportion of income spent on food change?
(b)[4]
Explain the difference between saving and borrowing.
(c)[6]
Analyse three ways a country’s HDI value might rise.
(d)[8]
Discuss whether a government should encourage some of the country’s citizens to work overseas.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The amount spent is likely to rise” …