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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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    In the Short­run (Specific­factors) Model, Foreign Direct
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In the Short­run (Specific­factors) Model, Foreign Direct

Question 38

Question 38

Multiple Choice

In the short­run (specific­factors) model, foreign direct
Investment is expected to cause a(n) ________ in the
Return to capital and a(n) ________ in the return to
Land in the receiving country.


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

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