A multinational-owned cocoa-processing business in a less-developed country receives more orders from buyers abroad and increases its sales to them.
Which chain best explains a possible benefit of this change for the host economy?
Spending on goods from abroad rises, so national income may increase over time
The extra sales count as imports, so the country may rely less on goods from abroad
More profit is sent to the multinational's home country, so local wages may rise
Export earnings rise, so national income may increase and poverty may fall over time
118 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.