Refer to Table 2.3. Assume that 2010 is the base year. The GDP deflator for 2007 is

All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT

A) increases in the flow of portfolio investments increase the likelihood of financial crisis. B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy. C) FDI is relatively illiquid compared to portfolio investment. D) portfolio investments have been on the decline in recent years (or decades). E) FDI investors must be willing to go through many ups and downs in order to benefit from their long-term investments.

Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins

A) wages should rise and rents should fall in H. B) wages and rents should rise in H. C) wages and rents should fall in H. D) wages should fall and rents should rise in H. E) rent will be unchanged but wages will rise in H.