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.

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Definitions:

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A state where resources are allocated in the most effective manner, maximizing the production of goods and services while minimizing waste and costs.

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