A-LevelEconomicsBalance of PaymentsOct/Nov 2015Paper 1 Q221 Mark
A Japanese car manufacturer established a successful factory in France. How would this be shown in the Japanese balance of payments? [Table 22.1]
Ainvestment in the factory: negative entry in the financial account, dividends and profits from the factory: positive entry in the current account
Binvestment in the factory: negative entry in the current account, dividends and profits from the factory: positive entry in the financial account
Cinvestment in the factory: positive entry in the financial account, dividends and profits from the factory: negative entry in the current account
Dinvestment in the factory: positive entry in the current account, dividends and profits from the factory: negative entry in the financial account
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of balance of payments within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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