Turkey's birth rate is declining, so its labour supply is likely to shrink. Even so, improvements in labour quality and the growing number of foreign multinational companies (MNCs) operating in Turkey (the host country to the MNCs) may help the economy avoid a recession. Economists are concerned that a recession could happen because the interest rate is expected to rise.
(a)[2]
Define the term birth rate.
(b)[4]
Explain two reasons why the quality of labour may increase in a country.
(c)[6]
Analyse how an increase in the interest rate could lead to a recession.
(d)[8]
Discuss whether MNCs improve, or fail to improve, the economic performance of the host countries in which 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 per 1000 people in the population” …