In the Short-Run (Specific-Factors) Model, an FDI Inflow into a Country's

question 128

Multiple Choice

In the short-run (specific-factors) model, an FDI inflow into a country's manufacturing sector will cause:

• A) an increase in the output of the agricultural sector.
• B) an increase in employment in the agricultural sector.
• C) a decrease in employment in the manufacturing sector.
• D) an increase in the output of and employment in the manufacturing sector.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Base Date

A specific point in time selected as a reference or starting point for calculations, measurements, or comparisons.

Gift-Wrapping Packages

Services or materials provided, often during holidays or special occasions, to aesthetically package gifts.

Importer

An entity that brings goods or services into a country from abroad for sale.