Exam 5: Movement of Labor and Capital Between Countries

Which of the following terms is used to describe Payments made by foreign resident workers to Families in their home nations or in the form of taxes Paid to their home nations?

Which of the following events will cause the production Possibility frontier to shift outward (to the right)?

In the short run (specific­factors) model, an FDI inflow Into a country's manufacturing sector will cause:

In the short run (specific­factors) model FDI in the a Country's manufacturing sector will cause its Production possibility frontier:

SCENARIO: TRADE IN GOODS BETWEEN MEXICO AND THE UNITED STATES (1) Mexico has 2,000 units of capital and 2,000 Workers; (2) the United States has 6,000 units of Capital and 4,000 workers; (3) clothing production is Labor intensive, and (4) chemical production is capital Intensive. Reference: Ref 5­2 (Scenario: Trade in Goods Between Mexico and the United States) Suppose that the United States Eliminates all restrictions on immigration from Mexico. How many Mexican workers must emigrate to the United States in order for factor price equalization to Occur?

What is the effect of immigration in the long run?

U.S.and European immigration policies are best Described as welcoming:

In the long run (the HO model), immigration will lead To:

According to the long­run (Heckscher­Ohlin) model, When FDI takes place, the investment capital generally Moves from:

Which of the following is nearly always TRUE of highly Educated immigrants?

Emigration and immigration are:

What is the overall long­run impact of labor Immigration on returns to factors of production?

The gains from immigration of labor or capital to the Recipient nation can be summarized as:

According to the short­run (specific­factors) model, How will FDI affect the return to capital and the return To land in the recipient nation?

If capital is specific to manufacturing and land is Specific to agriculture, then migration of labor from Low­income to high­income countries will cause:

Suppose that an economy has 1,500 units of capital and 1,000 workers.This economy produces computers and shoes.Computer production requires 4 units of capital per worker and shirt production requires 1 unit of capital per worker. A) Solve for the amount of labor and capital used in each industry. If you answered Question 6 at the end of textbook Chapter 5, you know that: (1) KC + KS = the total capital stock, and LC + LS = the total labor force; and (2) K = 4 × LC, and KS = 1 × LS. B) Suppose that the number of workers increases to 1,250 due to immigration, keeping total capital fixed at 1,000.Solve for the distribution of labor and capital between the two sectors.

The hypothesis that the results of a long­run Heckscher­Ohlin model with labor immigration will Result in an increase in production for the labor­ Intensive industry while reducing production in the Capital­intensive industry is known as the _____ Theorem.

Immigration causes __________ in the capital-labor Ratio and __________ in the return to capital.

According to the Rybczynski theorem, how will Immigration of unskilled labor from Mexico to the United States affect the Mexican economy?

In the short­run (specific­factors) model, foreign direct Investment is expected to ________ the marginal Product of labor and ________ wages in the receiving Country.