According to the Short­run (Specific­factors) Model

question 74

Multiple Choice

According to the short­run (specific­factors) model,
How will FDI affect the return to capital and the return
To land in the recipient nation?

• A)The returns to land and capital will both decrease.
• B)The return to land will decrease; the return to capital will increase.
• C)The return to land will increase; the return to capital will decrease.
• D)The returns to land and capital will both increase.

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Definitions:

Materialman's Lien

A legal claim against a property by a contractor, supplier, or worker for unpaid labor or materials provided for improving the property.

Accommodation Surety

is a guarantor who agrees to be responsible for another's debt or obligation as a favor, without receiving any benefit.

Compensated Surety

A compensated surety refers to a person or entity that is paid to guarantee the performance of an obligation by another party.

Difference

The result or discrepancy when comparing two or more entities, indicating distinction or variation between them.