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

question 9

Multiple Choice

In the short-run (specific-factors) model, foreign direct investment is expected to cause a(n) ________in the production of the capital-intensive good and a(n) ________in the production of the land-intensive good in the receiving country.

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

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Definitions:

Low-fiber Diets

Eating plans that contain small amounts of dietary fiber, which may lead to digestive problems and other health issues.

Body Mass Index (BMI)

Weight (in kilograms) divided by height (in meters) squared (kg/m2).

Obese

A medical condition characterized by excessive body fat that presents a risk to health, typically defined as a body mass index (BMI) of 30 or higher.

Automobile Fatalities

Deaths resulting from incidents or accidents involving motor vehicles.