Multiple Choice
How can we model the long-run effect of FDI flows on wages and rentals?
A) Use a simple supply-and-demand approach.
B) Use the Ricardian comparative advantage model.
C) Use the Heckscher-Ohlin model with the assumption that capital can migrate.
D) Use the Rybczynski theorem.
Correct Answer:
Verified
Correct Answer:
Verified
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