Developing countries can achieve higher productivity per unit of capital because they can use technologies developed by other countries. This is known as the: A. increasing returns to capital effect. B. copycat effect. C. catch-up effect. D. productivity effect.

Developing countries can achieve higher productivity per unit of capital because they can use technologies developed by other countries. This is known as the: A. increasing returns to capital effect. B. copycat effect. C. catch-up effect. D. productivity effect.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 6QA

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Question

Developing countries can achieve higher productivity per unit of capital because they can use technologies developed by other countries. This is known as the:

A. increasing returns to capital effect.

B. copycat effect.

C. catch-up effect.

D. productivity effect.

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