Suppose That the Real Return from Operating Factories in Mexico

question 145

Multiple Choice

Suppose that the real return from operating factories in Mexico rises relative to the real rate of return in Canada. What are the effects of this transaction?

• A) This will increase Canadian net capital outflow and decrease Mexican net capital outflow.
• B) This will decrease Canadian net capital outflow and increase Mexican net capital outflow.
• C) This will only affect Canadian net capital outflow.
• D) This will only affect Mexican net capital outflow.

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Definitions:

Sugars

Sweet-tasting, soluble carbohydrates, essential for energy source in living organisms, and come in various forms including glucose, fructose, and sucrose, commonly found in fruits, vegetables, and honey.

Transmembrane Proteins

Proteins that span the entire membrane of a cell and are involved in a variety of cellular processes including signaling, transport, and enzymatic activities.

Lipid Bilayer

A thin polar membrane made of two layers of lipid molecules, fundamental to the structure of cell membranes.

Hydrophobic

Describing molecules or substances that do not mix with or repel water.