According to the Long-Run (Heckscher-Ohlin) Model, When FDI Takes Place

question 22

Multiple Choice

According to the long-run (Heckscher-Ohlin) model, when FDI takes place, the investment capital generally moves from:

• A) southern hemisphere nations to northern hemisphere nations.
• B) high-wage nations to low-wage nations.
• C) Eastern Europe to Western Europe.
• D) privately owned enterprises to government-owned enterprises.

---

Definitions:

Pearson Correlation

A measure of the linear correlation between two variables X and Y, giving a value between +1 and -1 inclusive, where 1 is total positive linear correlation, 0 is no linear correlation, and -1 is total negative linear correlation.

Critical Values

Thresholds determined by the significance level of a test, marking the boundary within which the null hypothesis is accepted or rejected.

Pearson Correlation

A measure of the linear relationship between two continuous variables, ranging from -1 to 1, where 1 means a perfect positive correlation.

Pearson Correlation

Another name for Pearson r, indicating the degree of linear relationship between two variables.