In the Short­run (Specific­factors) Model, Foreign Direct

question 33

Multiple Choice

In the short­run (specific­factors) model, foreign direct
Investment is expected to cause a(n) ________ in the
Production of the capital­intensive good and a(n)
________ in the production of the land­intensive good
In the receiving country.

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

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Definitions:

Ending Inventory

Ending inventory refers to the total value of unsold goods that a company holds at the end of an accounting period.

Goods In Transit

Items that have been shipped by a seller but not yet received by the buyer, which can be included in the inventory of either party depending on the shipping terms.

Purchase Discount

is a reduction in the price of goods bought, usually due to early payment by the buyer to the seller.

Perpetual Inventory System

A perpetual inventory system continuously tracks inventory levels and costs, updating records with each receipt or sale of goods.