The U.S. Commerce Department defines foreign direct investment as occurring when:

Which of the following is characteristic of a monopolistically competitive industry?

Some economists have proposed a “brain drain” tax to be administered through the United Nations. This tax would:

The Heckscher-Ohlin model assumes that factors of production can move freely ________ but cannot move ________.

In the long run, when factors of production are mobile, an increase in the relative price of a good will increase the real earnings of the factor used intensively in the production of that good. This is known as:

The “magnification effect” of trade describes how:

In the short run, immigration __________ the capital/labor ratio and __________ the return to capital.

Use the figure below to answer the following question. The trade triangle shows the exports that were exchanged for imports.  What are the three points of the “trade triangle”?

Foreign direct investment that takes the form of a newly built startup facility is called:

The Heckscher-Ohlin model of international trade uses ________ and ________ to explain trade patterns.