In the Short­run (Specific Factors) Model, FDI Will

question 12

Multiple Choice

In the short­run (specific factors) model, FDI will
Cause _______________ in the return to capital and
Land and _______________ in the return to labor in
The recipient country.

• A)an increase; a decrease
• B)a decrease; an increase
• C)no change; an increase
• D)a decrease; no change

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Definitions:

Egocentrism

A cognitive characteristic where an individual has difficulty understanding or assuming any perspective other than their own, often observed in children during the Piagetian preoperational stage.

Cognitive Development

The process by which individuals acquire, develop, and utilize thinking skills, including perception, memory, understanding, and problem-solving, throughout their lifespan.

Procedural Knowledge

Describes the often unconscious, nondeclarative knowledge of how to do things that underlies many physical skills.