During the Past 20 Years, There Has Been Substantial

question 127

Multiple Choice

During the past 20 years, there has been substantial
FDI in China.What are the expected short­run effects
Of this FDI upon the rental rate on capital and wages
In China?

• A)The rental rate should increase and wages should decrease.
• B)The rental rate and wages should both increase.
• C)The rental rate and wages should both decrease.
• D)The rental rate should decrease and wages should increase.

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Definitions:

Monocyclic

Pertains to chemical compounds that contain only one cyclic structure within their molecular framework.

Hydrogenated

A process where hydrogen atoms are added to the double or triple bonds of organic compounds, resulting in the saturation of the molecules and often changing their physical and chemical properties.

Platinum Catalyst

A substance containing platinum used to increase the rate of a chemical reaction without being consumed in the process, commonly used in hydrogenation reactions.

Humulene

A naturally occurring monocyclic sesquiterpene, which is a significant component of the essential oil from hops and cannabis.