How Can We Model Long­run FDI Flows Using a Model

question 120

Multiple Choice

How can we model long­run FDI flows using a model
Similar to the long­run effects of long­run labor
Migration?

• A)Use a simple supply­and­demand approach.
• B)Use the Ricardian comparative advantage model.
• C)Use the Heckscher­Ohlin model with the assumption that capital can migrate.
• D)Use the Rybczynski theorem.

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Definitions:

Ingratiation

A psychological technique where an individual attempts to become more likable to their target, often through flattery or other forms of manipulation.

Impression Management

The process by which individuals attempt to control the perceptions others have of them, through the manipulation of information in social interactions.

Organizational Politics

The process and behavior in human interactions involving power and authority, used to gain advantage within an organization.

Power

The ability or capacity to influence or control the behavior of others, often backed by authority or force.