(11. Suppose that Brazil initially has a higher capital rental rate [r] than the United a. What would be the direction of foreign direct investment {FDI}? b. Use a world-capital-market graph to show the effects of FDI on the two countr rental rates of ca pital, GDP, and return to labor owners. Identifyr the net change in world output in the above graph. d. How would the wage rate and the rental rate of capital in the recipient cou affected in the long run? e. Discussion: what other effects could FDI cause in the recipient and source co that are not captured in the model? 5" Your