Take this Exam: A-Level Economics: Globalisation and Development | Zestly

Question 1

Which of the following are commonly cited criticisms of using foreign aid as a development strategy?

Accepted Answer

It can create a culture of dependency and discourage domestic tax reform

Question 2

What is the primary objective of microfinance in the context of economic development?

Accepted Answer

To provide small-scale financial services to low-income individuals who lack access to traditional banking

Question 3

Which of the following are potential benefits of multinational corporations (MNCs) for a developing economy?

Accepted Answer

Transfer of technology and managerial expertise

Question 4

How does 'capital flight' act as a barrier to development?

Answer

It increases the domestic money supply

Answer

It reduces the pool of domestic savings available for local investment

Answer

It forces the government to lower interest rates

Answer

It leads to an increase in the country's foreign exchange reserves

Question 5

Which of the following are arguments in favor of trade-led growth as a development strategy?

Answer

Exploitation of comparative advantage

Answer

Protection of infant industries from foreign competition

Answer

Increased reliance on volatile primary commodity prices

Answer

Access to larger global markets and economies of scale