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    International Economics Study Set 10
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    Exam 5: Movement of Labor and Capital Between Countries
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    According to the Short­run (Specific­factors) Model
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According to the Short­run (Specific­factors) Model

Question 34

Question 34

Multiple Choice

According to the short­run (specific­factors) model,
How will FDI affect wages in the recipient nation?


A) They will rise.
B) They will fall.
C) They will not affect wages.
D) They will fall in comparison to wages in the sending country.

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