📝 Industrialization and the Split In the Third World Economy

Q1. If a newly industrialized country lowers its average wage from \( $5 \) per hour to \( $3 \) per hour, which immediate effect is most likely on foreign firms considering relocation?

💡 Difficulty: easy | ✅ Correct: B

Q2. A multinational corporation receives tax incentives and low labor costs in Country X and reports a 12 % profit margin increase after five years. Which factor most directly contributed to this rise?

💡 Difficulty: medium | ✅ Correct: C

Q3. A developing country raises labor costs by 15 % after adopting ILO standards. Its main export has a price elasticity of demand of \(-0.8\). If the world price falls by 10 %, will the country's export revenue increase or decrease?

💡 Difficulty: hard | ✅ Correct: B