O Levels Economics (2281)•2281/12/M/J/18

Explanation
Multinational company contributions to local development
Steps:
- Identify standard of living as including income, infrastructure, education, and health improvements from economic activities.
- Evaluate each MNC action for direct local benefits in a developing country context.
- Eliminate actions that drain resources without local retention.
- Select the action enhancing long-term human capital for sustained gains.
Why C is correct:
- Skills training builds local workforce capabilities, increasing employability and productivity per human capital theory in development economics.
Why the others are wrong:
- A. Building roads aids transport but may primarily serve company operations, with limited broad local impact without sustained maintenance.
- B. Exporting ore generates revenue, but benefits locals only if taxes fund public goods; otherwise, it's neutral.
- D. Returning profits overseas reduces local reinvestment, lowering net economic benefits to the host country.
Final answer: C
Topic: Living standards
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