Exam 5: Movement of Labor and Capital Between Countries

What is the name given to the idea that, in a Heckscher-Ohlin model, labor immigration increases output for the labor-intensive industry while reducing output in the capital-intensive industry?

Consider a hypothetical economy in which only computers and shoes are produced. If two resources are being used, labor and capital, then any increase in immigration in the long run:

In the long run, an increase in FDI in the manufacturing sector will __________ the return to capital in the ____________ sector(s).

Which group of U.S. citizens is most likely to compete with illegal immigrants in the United States?

Emigration and immigration are:

If a person leaves Sweden to work in the United States, she is said to ________from Sweden and __________to the United States.

What is the Schengen Area?

According to the specific-factors model, what happens when the supply of labor increases?

In the short-run (specific-factors) model, foreign direct investment is expected to cause a(n) ________in the production of the capital-intensive good and a(n) ________in the production of the land-intensive good in the receiving country.

In recent years, most migrants to Europe:

In the short run, immigration lowers wages in both sectors because of what feature of production?

In which U.S. educational categories were foreign-born workers most highly concentrated in 2013?

Skill-biased technological changes benefit:

In the Heckscher-Ohlin model, how will immigration affect the sending country's production possibilities frontier?

How will immigration affect the marginal products and returns to factors of production in the long run?

To study labor migration using the specific-factors model, we assume ________ and ________ cannot move within the domestic economy, but we allow ________ to move both domestically and internationally.

The U.S. Commerce Department defines foreign direct investment as occurring when:

In the specific-factors model, migration of labor will cause the wage to:

If capital is specific to manufacturing and land is specific to agriculture, then migration of labor from low-income to high-income countries will cause the wage to:

During the past 20 years, there has been substantial FDI in China. What are the expected short-run effects of this FDI upon the rental rate on capital and wages in China?