In the short run (specificfactors) model, an FDI inflow into a country's manufacturing sector will cause:

a. an increase in the output of the agricultural sector.
b. an increase in the employment in the agricultural sector .
c. a decrease in the employment in the manufacturing sector .
d. an increase in the output and employment in the manufacturing sector.

Ans: d. an increase in the output and employment in the manufacturing sector.

Economics

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