Exam 5: Movement of Labor and Capital Between Countries

Assume two nations, two products, and two factors of production, labor and capital.Compare the situation of FDI in the short run and the long run regarding wages, returns to capital, industry output, and prices of goods.

Would you expect the owners of capital and land to support lower barriers on immigration more than lower barriers on imports?

According to the Rybczynski theorem, immigration will Cause:

Why do owners of capital and land usually support the reduction of restrictions on immigration?

Consider a hypothetical economy in which only Computers and shoes are produced and in which Computer production is capital intensive as compared With shoe production.If two resources are being used, Labor and capital, then the capital­labor ratio would be:

Immigrants were recruited to work in the iron and copper mines of Michigan's Upper Peninsula from the mid­1800s to the early 1900s.The first immigrants were recruited from the tin mining area of Cornwall (United Kingdom); later immigrants came from Finland, Sweden, northern Italy, and the Balkan countries. A) Give some plausible reasons why the later immigrants originated in Scandinavia and other parts of Europe. B) Give some reasons why Cornish immigrants tended to be paid more than later immigrants. C) Immigration more or less ceased around 1920.One reason was the introduction of one­man drilling techniques; another was the end of World War I.Why did these two events cause cessation of immigration to Michigan's Upper Peninsula.

In the HO model, a "box diagram" describes the Distribution of:

The results of the influx of workers into Miami in 1980 As a consequence of the Mariel boatlift and from Russia To Israel in 1989 after the fall of the Soviet Union:

Which of the following is a key assumption in factor Price insensitivity in response to a fall in FDI?

The economic benefit to immigrating workers is:

A corollary to the Rybczynski theorem is that in the Long run, prices of factors will not be affected.This is Known as:

The immigration of Russian Jews to Israel:

Economist George Borjas has estimated the net Benefits (+)/costs (-) to the United States from labor Immigration to be approximately:

Consider a hypothetical economy in which only Computers and shoes are produced and in which Computer production is capital intensive compared with Shoe production.If two resources are being used, labor And capital, then any increase in immigration in the Long run:

Which of the following BEST describes the short­run Effects of FDI inflows to Singapore during the latter Part of the twentieth century?

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

The effect of immigration on industry output in the Short run is:

Which legislation would U.S.labor unions support?

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

Illegal immigrants into the United States tend to Compete mainly with: