A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2015 · Q271 Mark
At a time when international demand for oil was high, Bolivia encouraged investment by foreign firms in order to exploit its oil and gas resources. What overall impact would this have on the balance of payments of Bolivia?
Adefinitely favourable, as Bolivia could increase its exports of gas and oil
Bdefinitely unfavourable, as the foreign companies would transfer profits out of the country
Cuncertain, as there would be inflows and outflows of currency
Dzero, as Bolivia itself would use the gas and oil produced
✓ Correct answer
C: uncertain, as there would be inflows and outflows of currency
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