In the Short-Run (Specific-Factors) Model, What Will Happen to the Rental

question 135

Multiple Choice

In the short-run (specific-factors) model, what will happen to the rental rate on capital and the wage rate when there is an inflow of FDI into the country?

• A) Both the rental rate on capital and the wage rate will increase.
• B) Both the rental rate on capital and the wage rate will decrease.
• C) The rental rate on capital will increase and the wage rate will decrease.
• D) The rental rate on capital will decrease and the wage rate will increase.

Explain the concept of soft and hard currencies and their roles in international finance.

Analyze the effects of exchange rates and currency strength on export strategies.

Understand the mechanisms and benefits of different export and trade strategies.

Gain insights into the roles and controversies surrounding international trade organizations and agreements.

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Definitions:

Sensorimotor Stage

The first stage of Piaget's theory of cognitive development, occurring from birth to about 2 years of age, where infants learn about the world through their senses and actions.

Piaget

Jean Piaget, a Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development.

Problem-Solving Strategy

A method or approach used to identify, analyze, and resolve problems or obstacles in an effective manner.

High Shelf

A storage space located at a higher level, often used for keeping items that are either not frequently used or need to be out of reach for safety reasons.