O Levels Economics (2281)•2281/12/M/J/25

Explanation
Mining Activities and Host Nation Benefits
Steps:
- Evaluate each option for direct benefits like skill-building, infrastructure, or technology transfer to the host nation.
- Identify benefits: training (A) develops local expertise; infrastructure (B) enhances national facilities; technology (D) introduces innovations.
- Contrast with profit repatriation (C), which removes wealth without local retention.
- Select the option with minimal or negative net benefit to the host.
Why C is correct:
- Repatriation of profits and export of minerals directly transfers economic value out of the host nation, reducing local wealth retention as defined in foreign direct investment principles.
Why the others are wrong:
- A: Builds human capital through local training, fostering long-term workforce skills.
- B: Improves national infrastructure, providing enduring public goods beyond mining.
- D: Transfers advanced technology, enabling local innovation and productivity gains.
Final answer: C
Topic: Differences in economic development between countries
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