A multinational has an appliance-components factory in Lydora, a less-developed country.
| Measure | Year 1 | Year 4 |
|---|---|---|
| Local workers employed | 600 | 1,050 |
| Annual purchases from local suppliers | £12 million | £20 million |
| Annual profit sent to the multinational's home country | £4 million | £11 million |
Which conclusion about the effect of the multinational on Lydora's economy between Year 1 and Year 4 is best supported by the data?
Employment rose by 450 and local suppliers gained £8 million of extra annual orders, while the extra £7 million sent abroad raised Lydora's income.
Employment rose by 450 and local suppliers gained £8 million of extra annual orders, but £15 million more annual profit left Lydora.
Employment rose by 450 and local suppliers gained £8 million of extra annual orders, but £7 million more annual profit left Lydora.
Employment rose by 1,050 and local suppliers gained £20 million of extra annual orders, but £11 million more annual profit left Lydora.
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.