In the Short-Run (Specific-Factors) Model, Foreign Direct Investment Is Expected

question 140

Multiple Choice

In the short-run (specific-factors) model, foreign direct investment is expected to ________the marginal product of labor and ________wages in the receiving country.

• A) decrease; decrease
• B) increase; decrease
• C) decrease; increase
• D) increase; increase

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Definitions:

Adaptability

The quality of being able to adjust to new conditions or environments, showing flexibility in coping with changes.

Quality of Life

The general well-being of individuals and societies, outlining the negative and positive aspects of life, including health, comfort, and happiness.

Sense of Taste

One of the five senses, culminating from the ability to perceive and distinguish flavors through the taste buds in the mouth.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is persistently elevated.