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O-LevelEconomicsEconomic development2281/12 · May/June 2021 · Q21 Mark

A multinational company (MNC) wishes to invest in a low-income country to expand its palm oil production. What is most likely to make this investment possible?

Ahigh cost of clearing forests to increase land for plantations
Bincreased demand for palm oil
Cshortages of labour in the rural economy
Dthe removal of subsidies for palm oil production

✓ Correct answer

B: increased demand for palm oil

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About this question

Topic
Economic development, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2021 Paper 1 Variant 2, question 2.

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