If We Use the Short­run (Specific­factors) Model to

question 106

Multiple Choice

If we use the short­run (specific­factors) model to
Model FDI movement from one nation to another, then
Wages in the recipient nation:

• A)decline absolutely.
• B)rise as a result of an increase in the MP of labor.
• C)are not affected.
• D)decline relatively, as capital competes with labor but not absolutely.

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Definitions:

Henry Kissinger

A German-born American political scientist and diplomat who played a significant role in U.S. foreign policy between the 1960s and 1970s, notably in the Vietnam War and détente with the Soviet Union.

Antiwar Demonstrations

Public protests against military conflict and the policies that promote it, often associated with the peace movement.

Kent State University

Site of a 1970 shooting where National Guard troops fired on anti-Vietnam War protestors, resulting in four deaths and escalating public outcry.

State Militias

Military forces maintained by the states of the United States, which can be called upon for service during emergencies, natural disasters, or for defense purposes, separate from the federal armed forces.