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
Chapter16: Country Risk Analysis
Section: Chapter Questions
Problem 6QA
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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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