As FDI flows into a nation, which of the following will happen to the marginal product of labor in the short run?
A) It will rise.
B) It will fall.
C) It will not change.
D) It will first fall then rise.

Question

Quizplus · Accepted Answer

FDI inflows into a nation increase its productivity and efficiency, which leads to an increase in the marginal product of labor in the short run. This is because FDI brings in new technologies, managerial skills, and access to a wider market, which leads to an increase in output per worker.

As FDI Flows into a Nation, Which of the Following