International factor movements can sometirnes substitute for trade, so it is not surprising that international migration of labour is similar in its causes and effects to international trade. Labour moves from countries where it is abundant to countries where it is scarce. This movement raises total world output, but it also generates strong income distribution effects, so that some groups are hurt as a result, This movement can be illustrated by on what was happening in the United States and Mexico. Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. Ql: Explain the effects of this situation to the following five different groups of people: a) Workers who were originally in the United States b) American landowners c) Workers who stay in Mexico d) Mexican landowners e) The workers who do move

International factor movements can sometirnes substitute for trade, so it is not surprising that international migration of labour is similar in its causes and effects to international trade. Labour moves from countries where it is abundant to countries where it is scarce. This movement raises total world output, but it also generates strong income distribution effects, so that some groups are hurt as a result, This movement can be illustrated by on what was happening in the United States and Mexico. Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. Ql: Explain the effects of this situation to the following five different groups of people: a) Workers who were originally in the United States b) American landowners c) Workers who stay in Mexico d) Mexican landowners e) The workers who do move

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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