Day: November 28, 2020

What is likely to improve the visible trade balance of South Africa but to worsen its invisible balance?

Select ONE answer:

1. A South African company sets up a subsidiary company in England.
2. A UK company builds a factory in South Africa to serve the African market.
3. The South African government removes import controls on semi-manufactured goods.
4. The South African government increases interest rates with a view to strengthening the exchange rate of the South African Rand.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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