Resource extraction trade-offs for low-income countries

Steps:

• Identify the core issue: Allowing MNC mining provides economic benefits but incurs long-term costs like resource depletion.
• Review options: Seek a pair with one clear benefit (e.g., economic gain) and one cost (e.g., irreplaceable loss).
• Evaluate A: Improved trade balance from exports is a benefit; losing finite minerals is a cost, creating conflict.
• Confirm: This matches real-world mining economics where short-term gains clash with sustainability.

Why A is correct:

• Balance of trade improves via mineral exports (per mercantilist trade theory), but finite resources deplete without renewal, per resource economics law of non-renewable scarcity.

Why the others are wrong:

• B: Both higher employment and MNC training are benefits, lacking a cost-conflict.
• C: MNC profits and inefficient production are both costs to the host country, no benefit.
• D: Sustainable development and economic growth are both positive outcomes, no opposition.

Final answer: A