Multinational countries invest in developing their organizations' infrastructure in Liberia. They hope that this development will help their branches in the country in the upcoming years. Which of the following is most likely to be the result of this situation?
A) Liberia will face a balance of payments deficit.
B) Liberia will face a balance of payments surplus.
C) Liberia will face a trade surplus.
D) Liberia will face a trade deficit.

Question

Quizplus · Accepted Answer

When multinational companies invest in infrastructure in a country, it generally leads to an increase in their production and exports, which results in an increase in the country's exports and a surplus in the balance of payments. Therefore, the most likely result of this situation is that Liberia will face a balance of payments surplus.

Multinational Countries Invest in Developing Their Organizations' Infrastructure in Liberia