In 2004, when international demand for oil was high, Bolivia encouraged investment by foreign firms in order to exploit its oil and gas resources.
What impact would this have on the balance of payments of Bolivia?
1 )
definitely favourable, as Bolivia could increase its exports of gas and oil
2 )
definitely unfavourable, as the foreign companies would transfer profits out of the country
uncertain, as there would be inflows and outflows of currency
4 )
zero, as Bolivia itself would use the gas and oil produced
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