What would be the effect on wages-inflow of foreign capital

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Reference no: EM13896669

Suppose Country A is a small open economy that takes world prices as given.

A) What would be the effect on wages and rents in A if it were to experience an inflow of foreign capital? Use a diagram AND a table to convey your answer.

B) Which groups would favor this capital inflow? Which would oppose it? Explain.

Reference no: EM13896669

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