Ade’s Engineering Company (AEC) makes parts for cars and trucks. These are sold to car manufacturers in different countries. The parts include metal brake components and rubber seals to fit around windows. AEC operates in country X, which, until a few years ago, had an economy dominated by agriculture and tourism. Over the last 20years the relative importance of the primary sector has declined, to be successful AEC requires natural resources to make car parts and the services provided by other businesses. Consumer incomes are rising rapidly in Country X.
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