In the shortrun (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.
a. an increase; a decrease
b. a decrease; an increase
c. no change; an increase
d. a decrease; no change
Answer: b. a decrease; an increase
Economics
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If the annual inflation rate in an economy is negative, the purchasing power of a dollar:
A) will remain the same over time. B) will increase over time. C) will decrease over time. D) can increase or decrease depending on the nominal interest rate.
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Given the information in the table above, Foreign's opportunity cost of cloth is
A) 0.5. B) 2.0. C) 6.0. D) 1.5. E) 3.0.
Economics