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In the Short­run (Specific Factors) Model, FDI Will

Question 12

Multiple Choice

In the short­run (specific factors) model, FDI will
Cause _______________ in the return to capital and
Land and _______________ in the return to labor in
The recipient country.


A) an increase; a decrease
B) a decrease; an increase
C) no change; an increase
D) a decrease; no change

Correct Answer:

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