Question

Which is not a result of the multiplier effect of an American soft drink building up its operations in Romania?

Answer 1

Answer:

Higher unemployment is not a result of the multiplier effect of the given situation.

Explanation:

If an American company opens up facilities in Romania for soft drinks, the effects on the Romanian economy will be positive. Building up such operations will result in a chain reaction as multiple sectors in the country will receive a boost because of the demand of the company for materials and services.

The employment will increase in the country. Not just people that are directly employed by the company itself, but because it will use numerous materials and services from other companies and industries, the chances are that more people will be employed in them as well. Another thing to which this company will result will be greater competition on the market, which leads to higher quality products for lower prices.