Question

An African country requires all foreign retailers to undergo a lengthy evaluation before setting up stores in the country. How does this affect the country’s economy?
A.

The country’s economy will strengthen because more foreign companies will set up stores in the country.

B.

The country’s economy will strengthen as their own companies will face less competition.

C.

The country’s economy will weaken because it would be difficult to meet the demand for foreign goods.

D.

The country’s economy will weaken because foreign companies will be less likely to set up stores in the country.

Answer 1

Answer: D. The country’s economy will weaken because foreign companies will be less likely to set up stores in the country

Explanation:

Due to the fact that the African country requires all the foreign retailers to undergo a lengthy evaluation before setting up stores in the country, this will in turn, discourage the foreign retailers and they'll rather look somewhere else to set up their stores

Therefore, the economy of the country will weaken because foreign companies will be less likely to set up stores in the country.