According to the shortrun (specificfactors) model, how will FDI affect the marginal productivity of labor in the recipient nation?
a. The MPL will rise in the production of both the labor and capitalintensive goods.
b. The MPL will rise only in the production of the labor intensive good.
c. The MPL will rise only in the production of the capitalintensive good.
d. The MPL will fall in the production of both the labor and capitalintensive goods.
Answer: a. The MPL will rise in the production of both the labor and capitalintensive goods.
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The amount earned by owners of the nation's factors of production is
A) total income. B) private and government transfer payments. C) the wages and fringe benefits received by the nation's workers. D) all profits received by businesses.
In the strategic sequential labor negotiation game:
a. The first mover has an advantage b. The second mover has an advantage c. There is no advantage to either mover d. None of the above