According to the Short-Run (Specific-Factors) Model, How Will FDI Affect

question 38

Multiple Choice

According to the short-run (specific-factors) model, how will FDI affect the marginal productivity of labor in the recipient nation?

• A) The MPL will rise in the production of both the labor- and capital-intensive goods.
• B) The MPL will rise only in the production of the labor-intensive good.
• C) The MPL will rise only in the production of the capital-intensive good.
• D) The MPL will fall in the production of both the labor- and capital-intensive goods.

---

Definitions:

African Sculpture

African sculpture encompasses the diverse artistic traditions of the African continent, characterized by wood carvings, bronze and stone sculptures, masks, and figures, often serving both aesthetic and ceremonial functions.

Nok

An ancient civilization in West Africa known for its early ironworking technology and distinctive terracotta sculptures that date to around 1500 BC to AD 200.

Sapi

A term referring to the Sapi-Portuguese ivories, sculptural artworks created in Sierra Leone during the 15th and 16th centuries combining African and Portuguese influences.

Saltcellars

Decorative containers used for holding and dispensing salt, often crafted from materials like silver, glass, or ceramics, and can be highly ornamental.