International Factor Flows Tend to Lower Incomes of Those Factors

question 6

True/False

International factor flows tend to lower incomes of those factors in host countries that most directly substitute for that factor,and to raise the incomes of other factors.

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Definitions:

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, albeit without any intention from the contracting parties to benefit the third party.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.

Paving Streets

The process of covering and constructing roads with materials like asphalt or concrete to create a smooth, durable surface for vehicles and pedestrians.