Company X is a multinational company that produces batteries for electric cars. It decides to invest in a new factory in country N . Under which conditions is this investment most likely to improve the current account balance on the balance of payments in country N ?

A.
B.
C.
D.
Economics
IGCSE&ALevel
CAIE
Exam No:9708_w24_qp_32 Year:2024 Question No:28

Answer:

D

Knowledge points:

6.3.1.1 current account: trade in goods, trade in services, primary income and secondary income
6.3.1.2 definition of balance and imbalances (deficit and surplus) in the current account of the balance of payments
6.3.3 causes of imbalances in the current account of the balance of payments

Solution:

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