According to the Short­run (Specific­factors) Model

question 34

Multiple Choice

According to the short­run (specific­factors) model,
How will FDI affect wages in the recipient nation?

• A)They will rise.
• B)They will fall.
• C)They will not affect wages.
• D)They will fall in comparison to wages in the sending country.

---

Definitions:

Economic Shift

A significant change in the structure or performance of an economy, often leading to new patterns in employment, investment, and consumer behavior.

Gross Domestic Product

Gross Domestic Product (GDP) is the total market value of all goods and services produced within a country in a specific period, serving as a broad indicator of economic health.

Cultural Values

The core principles and ideals upon which an entire community exists and makes decisions, deeply influencing consumer behavior and preferences.

Shared Ideas

Concepts, thoughts, or innovations communicated between individuals or groups leading to collective understanding or development.