International Econ

international conflict resolution

Which of the following differs in its essential analytical framework?

the marginal product of labor.

The slope of the production function measures

workers in the labor abundant country would have no desire to migrate to the capital abundant country.

If the world attained a perfect Heckscher-Ohlin model equilibrium with trade, then

wages generally rose faster in the origin countries.

During the mass migration period of late 19th-early 20th centuries,

leads to wage convergence by raising wages in source and lowering them in destination country.

International labor mobility

a complete substitute for trade flows.

In theory, labor mobility is

a partial substitute for trade flows.

In practice, international labor mobility is

the marginal product of labor decreases.

In a typical short-run production function, as labor increases

the marginal product of labor.

Using the production function model, the real wage is determined by

raise the income of land owners in Home.

If initially wages are higher in Home than in Foreign, then a movement of workers from Foreign to Home will

lead to equal real wages in all countries.

A redistribution of workers from low to high real wage countries will eventually result in

It has been argued that even if intra-European Union labor mobility were to be completely removed, one should not expect to observe massive, or even large reallocations of populations with the E.U. Discuss.

Theoretically, just as completely free trade consistent with Heckscher-Ohlin model (with no complete specialization) is associated with factor price equalization; so does completely free labor mobility. It therefore follows that if intra E.U. trade flouri

It may be argued that international labor mobility and trade are substitutes one from the other.

workers earning lower real wages will have an incentive to move to a higher-wage country. Using the Neo-Classical model framework, this means that countries with relative more labor per unit capital may be said to have a relative abundance of labor (or a

It may be argued that, although theoretically international labor mobility and international trade may be substitutes one for the other, inductive inferences drawn from real world observations suggest that the two are actually complementary. Give an examp

One can easily observe that sales of Irish Whiskey are relatively robust in neighborhoods with large populations of Irish descent. Alternatively, one finds sales of imported Indian foods in specialized restaurants in areas with relatively large population

One concomitant of international labor mobility is the phenomenon known as the "brain drain." This refers to the immigration (or emigration) of the "best and brightest." Generally countries tend to encourage such immigration. Explain why. At times, countr

The answer to the first question is easy. The highly skilled workers' marginal product is likely to be markedly higher than the average product in the host country. The host country reaps the benefits of education expended by other countries' educational

Suppose Australia, a land (K)-abundant country and Sri-Lanka, a labor(L)-abundant country both produce labor and land intensive goods with the same technology. Following the logic of the Heckscher-Ohlin model from Chapter 4, what will be the incentive for

Once trade is established, there is no longer any incentive for (economic-based) immigration, since the real wages will be equalized in both. If a tariff is established in Australia, then the price of the labor intensive good will be higher in Australia,