When FDI Occurs, What Are the Long­run Effects of FDI

question 45

Multiple Choice

When FDI occurs, what are the long­run effects of FDI
On industry output in the recipient nation?

• A)There is no change in either the output of the capital­intensive or the labor­intensive industry.
• B)The labor­intensive industry expands; the capital­ intensive industry contracts.
• C)The capital­intensive industry expands; the labor­ intensive industry contracts.
• D)Both capital­ and labor­intensive industries expand in the same proportion.

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Definitions:

Equals

Equals is a method typically defined in object-oriented programming languages to evaluate whether two objects are equivalent in value or state.