1) What is one benefit of trade liberalisation for consumers in a developing country? a) Higher government tax revenue b) Cheaper imports and higher real incomes c) Less competition for domestic firms d) Higher production costs 2) Why is government regulation important when attracting Foreign Direct Investment (FDI)? a) To stop all foreign firms entering the country b) To increase tariffs on imports c) To ensure local firms and workers benefit from FDI d) To prevent economic growth 3) Removing government subsidies may cause prices to rise in the short run. Explain why this happens using supply and demand. a) supply shifts right b) demand shifts left c) demand shifts right d) supply shifts left

4.3.3.1

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