According to the shortrun (specificfactors) model, how will FDI affect the marginal productivity of labor in the recipient nation?
a. The MPL will rise in the production of both the labor and capitalintensive goods.
b. The MPL will rise only in the production of the labor intensive good.
c. The MPL will rise only in the production of the capitalintensive good.
d. The MPL will fall in the production of both the labor and capitalintensive goods.
Answer: a. The MPL will rise in the production of both the labor and capitalintensive goods.
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A) 0ACQ*. B) 0ECQ*. C) 0FCQ*. D) EFC. E) none of the above