Are There Impediments to International Movement of Labor and Capital

question 85

Multiple Choice

Are there impediments to international movement of labor and capital?

• A)Yes, but they apply to labor only; capital mobility is almost completely free.
• B)Yes, although these apply to capital, and not to labor.
• C)Yes, there are significant (often prohibitive) restrictions on labor and capital mobility.
• D)No, these have been removed with the passage of recent trade legislation.

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Definitions:

End-of-year Payments

Financial distributions made to investors or employees at the end of a fiscal year, often in the form of bonuses or dividends.

Investment Opportunity

A time-sensitive potential for investment that promises a probable return on the capital invested.

Similar Risk

Investment scenarios where the level of risk is comparable across different assets or projects.

Discount Rate

This term is used in various contexts but generally refers to the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.