Practise explaining how market access, subsidy removal and cross-border investment can support development and evaluating long-run gains and costs for both trading partners.
Globalisation means that goods and services, capital and labour are traded on a worldwide basis.
Which combination illustrates that each trade partner can benefit when a low-income country trades with a high-income country?
the low-income country
the high-income country
contracts are not always fulfilled
due to corrupt practices
agrees to increase investment in
the infrastructure of low-income
countries
experiences liquidity problems
that restrict investment
transfers short-term government
loans repayable at high interest
rates
multinational companies
repatriate profits from mining
of rare minerals for export
receives supplies at high prices
from multinationals to meet
excess demands for rare metals
supplies seasonal labour to
overcome shortages for
picking fruit crops
repatriates wages to families
of seasonal workers
D