A multinational trains local workers and buys inputs from local suppliers. The workers' incomes rise and they spend more in nearby businesses. Which chain best describes a possible benefit to the host economy?
Local skills fall, demand falls and local employment decreases
Local skills rise, local demand rises and more jobs may be created
Profits leave the country, imports fall and local demand must rise
Technology use falls, productivity falls and wages rise
48 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.