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In the Short­run (Specific­factors) Model, Foreign Direct

Question 33

Multiple Choice

In the short­run (specific­factors) model, foreign direct
Investment is expected to cause a(n) ________ in the
Production of the capital­intensive good and a(n)
________ in the production of the land­intensive good
In the receiving country.


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

Correct Answer:

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