In the Short­run (Specific­factors) Model, Foreign Direct

question 80

Multiple Choice

In the short­run (specific­factors) model, foreign direct
Investment is expected to ________ the marginal
Product of labor and ________ wages in the receiving
Country.

• A)decrease; decrease
• B)increase; decrease
• C)decrease; increase
• D)increase; increase

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Definitions:

Overdevelopment

Excessive growth or development beyond what is normal or expected.

Quadri-

A prefix meaning four, used in forming nouns or adjectives that denote four parts, four times, or four dimensions.

Four

The number following three and preceding five, represented in Roman numerals as IV and in Arabic numerals as 4.

Milli-

A prefix in the metric system denoting one thousandth (1/1000) of the unit it precedes.