Which of the Following BEST Describes the Short-Run Effects of FDI

question 117

Multiple Choice

Which of the following BEST describes the short-run effects of FDI inflows to Singapore during the latter part of the twentieth century?

• A) The effects contradicted the specific-factors model because wages fell, while the rental on capital rose.
• B) The effects confirmed the specific-factors model because wages rose, while the rental on capital fell.
• C) FDI did not have any measurable effects on either wages or the rental on capital in Singapore.
• D) FDI confounded economists because both the rental on capital rose and wages rose in Singapore.

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Definitions:

Intensive Contact

Close, thorough, or comprehensive interaction or engagement between individuals, groups, or entities, often leading to significant influence or change.

Restorative Justice

A form of justice that focuses on the rehabilitation of offenders through reconciliation with victims and the community at large.

Indigenous Communities

Groups of indigenous people who maintain traditions or aspects of an early culture that is associated with a given region.

Social Order

The structured pattern of social arrangements and organized relationships within a society, which greatly influences its functioning and stability.