WorksheetsInternational Movement of Resources file 3
Total questions: 124
Worksheet time: 1hrs 2mins
International movements of production factors include
international labor migration.
transfer of financial assets through buying bonds and stocks in foreign stock markets.
transactions of multinational corporations involving direct ownership of foreign firms.
(a), (b) and (c).
Portfolio investments refer primarily to
direct investments.
real assets.
bonds.
long-term assets.
Prior to World War I, majority of foreign investments were in the form of
direct investment.
horizontal integration.
portfolio investment.
remittance.
Prior to World War II, most of foreign investments were in the form of
greenfield investment.
horizontal integration.
cross border Merger & Acquisition.
portfolio investment.
The establishment of a wholly new operation in a foreign country is referred to as a(n)
outplacement.
acquisition.
greenfield investment.
licensing agreement.
Buying a foreign firm is referred to as a(n)
outsourcing.
acquisition.
greenfield investment.
licensing agreement.
Direct investments usually involve the transfer of
capital.
technology.
management skills.
(a), (b) and (c).
Which of the followings is considered as international investment?
Export goods and services.
Remittances from overseas residents.
Buy a firm overseas.
Capital funded by a Non-Governmental Organization (NGO) of a foreign country.
International movement of production factors is politically sensitive and may face
restrictions on immigration.
restrictions on financial asset flows.
restrictions on the activities of multinational corporations.
(a), (b) and (c).
There are two main forms of foreign investments:
cross-border M&A and greenfield investment.
bond and stock.
foreign portfolio investment and foreign direct investment.
commercial loan and Official Development Assistance (ODA).
Prior to World War I, the largest home country of foreign investments was
China.
the United Kingdom.
the United States of America.
Japan.
Two main characteristics of investments are
risk and profitability.
job creation and technology transfer.
resource transfer and balance of payment effects.
Portfolio investors may face the risk of
wage adjustment in labor market.
price variability in commodity market.
bankruptcy and variability in market value.
(a), (b) and (c).
Two-way international portfolio investments can be explained by
horizontal integration.
risk diversification.
vertical integration.
higher yield abroad.
Reasons for foreign direct investments are
to avoid tariff.
to seek for resources.
to seek for market.
(a), (b) and (c).
Host governments use a range of controls to restrict Foreign Direct Investment. The two most common measures are
ownership restraints and performance requirements.
monetary restraints and control on accounts.
financial and fiscal incentives.
tax concessions and repatriation limitations.
Multinational Corporation’s foreign direct investments may impact the home countries in terms of
income redistribution.
increasing rate of return on capital.
loss of domestic jobs.
(a), (b) and (c).
Multinational corporations often
increase the transfer of technology between nations.
make it harder for nations to foster activities of comparative advantages.
cause political conflicts in the host countries where their subsidiaries operate.
(a), (b) and (c).
The existence of Multinational Corporations can be reasoned by
the comparative advantages of a host nation.
the competitive advantages of a global network of production and distribution.
the comparative advantages of the home country.
the competitive advantages of the home country.
The host country often complains Multinational Corporations of
tax avoidance.
inappropriate technology transfer.
excessive exploitation of their natural resource.
(a), (b) and (c).
One negative effect that Multinational Corporations may cause on the home country is
loss of sovereignty.
causing political confliction.
seeking capital inflow.
erosion of the home nation’s technology advantages.
The host countries expect Multinational Corporations to bring in such following positive impact(s) as
raising tax revenue.
transfer of appropriate technology.
industrial linkages with local firms.
(a), (b) and (c).
Most of Multinational Corporations can ensure the supply of foreign intermediate products and raw materials by
vertical integration with their foreign affiliates.
imports from foreign companies.
inter-firm trade.
horizontal integration with their foreign affiliates.
By horizontal integration, Multinational Corporations can
diversify into unrelated businesses across countries.
ensure the supply of foreign intermediate products and raw materials.
integrate upstream and downstream stages of production.
reduce competition by merging firms at different supply-chain stages.
Multinational Corporations are firms that ________ production facilities in several countries.
run
manage
control
(a), (b) and (c)
The price at which units within a single Multinational Corporation sell goods and services to other units within the MNE is the ________ price.
foreign exchange
arms-length
international
transfer
Which of the following is the definition of Multinational Corporations?
A company employing foreign nationals.
A company operating in emerging economies.
A headquarter company in one country but having operations in other countries.
None of the above.
Labor migration from one country to another
intensifies the differences in relative resource endowments among nation.
leads to international convergence of wage rates and to greater global economic efficiency.
raises real wage rate in the country to which workers migrate.
increases the potential for international trade on comparative advantage.
The tendency for well-educated and highly skilled workers to migrate from developing countries to industrial ones is
a part of the trade problems.
a part of the transfer pricing problems with Multinational Corporations.
referred to as “brain drain” problem.
prevented by current US immigration policy.
Brain drain is the problem of
migration of unskilled labor.
migration of untrained labor.
migration of skilled labor.
delivery of slaves.
In theory, international labor movement will
reduce labor force and increase real wage in the Host country.
raise labor force and real wage in the Host country.
reduce labor force and raise real wage in the Home country.
reduce labor force and reduce real wage in the Home country.
International labor migration can be fully explained by
expected higher income abroad.
expected better life in the foreign country.
both economic and noneconomic reasons.
none of the above.
The migration of highly skilled and trained people creates benefits on
the nation of emigration at the cost of the nation of immigration.
the nation of immigration at the cost of the nation of emigration.
both nations of immigration and emigration without cost.
the nation of emigration at its cost.
During the nineteenth century, there were great waves of immigrants from
Asia to Europe.
America to Europe.
Europe to the New World.
Europe to Latin America.
In order to control migration, the U.S and other developed countries impose policies on
regulating immigration of unskilled workers and encouraging immigration of skilled workers.
facilitating immigration of unskilled workers and regulating immigration of skilled workers.
encouraging emigration of both unskilled and skilled workers.
(a), (b) and (c).
The U.S. and other developed countries regulate emigration of skilled labor by
prohibiting emigration.
taxing on skilled migrants on their exit or subsequent higher earnings in the nation of immigration.
not allowing emigrants to return home.
(a), (b) and (c).
The international labor migration may involve cost of
transportation expenditure.
loss of wages during relocating and searching for a job.
separation from relatives.
(a), (b) and (c).
The economic benefits of international migration are
higher real wages abroad.
greater educational and job opportunities for the migrants’ children.
better living conditions abroad.
(a), (b) and (c).
The reason the residents of a nation DO NOT borrow from other nations and themselves undertake real investments in their own Nation is that
Multinationals want to retain control over their own technology.
Banks do not want to lend to foreigners.
vertical integration is not possible for foreigners.
_____ measure(s) the new equity investment and loans within multinational enterprises during a specific period of time.
Flows of FDI
Stock of FDI
Firm specific advantages
International portfolio investment
The following are motives for direct investment EXCEPT:
To retain direct control over some ownership advantages.
To guarantee their product quality.
To avoid tariff imposed by the host country.
To give away some intangible assets.
Which of the following is NOT a beneficial effect or direct investment on the Home country?
Transfer technology.
Higher profits.
Risk diversification
Avoid the possible loss of export markets.
Foreign direct investment benefits the host nation because it
increases the K/L ration
increases the productivity of labor
Increases per capital income.
all of the above
Which of the following are three of the main benefits of inward FDI on a host country?
The resources – transfer effect, the employment effect, and the balance -of -payments effect.
The capital – transfer effect, the technology effect, and the currency exchange effect.
The cultural awareness effect, imperial domination effect, and economic domination effect.
The market monopolizing effect, national sovereignty effect, and the reverse resource transfer
Which of the followings is a risk/ problem associated with foreign direct investment?
A firm could give away a valuable technological know – how to a potential competitor.
Firms must bear high transaction cost on establishing a facility in a foreign country where regulations may be different.
It creates a risk of a rival getting a commanding position in one market and then using the profit to subsidize competition in other market.
It becomes unprofitable to ship low value-to-weight ratio products when transportation costs are high.
Owners of capital in host developing countries generally
favor an inflow of foreign direct investment
are indifferent to a foreign direct investment inflow
oppose an inflow of foreign direct investment
We cannot say without additional information.
Labor in host developing countries generally
oppose an inflow of foreign direct investment
favor an inflow of foreign direct investment
is indifferent to a foreign direct investment
we cannot say without additional information
_____ occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10% or more in a foreign business entity.
Portfolio investment
Foreign direct investment
Official development assistance
Oversea remittance
Foreign investors prefer direct investments to portfolio investment because they want to: ________
diversify risk and gain higher rate of return on capital
Export product to the host market.
Transfer technology to local investors.
retain direct control over their unique production knowledge or managerial skills
Which of the following would NOT increase the chances that an individual will migrate?
An increase in the expected wage rate in the host country.
A decrease in the expected wage in the home country.
A decrease in the expected wage rate in the host country
A decrease in the cost of travelling between countries
Foreign investment may affect both host and home countries in regard to the followings EXPECT:
redistribution of domestic income between labor and capital
change of term of trade
Improvement or difficulties of balance of payment.
Foreign exchange reserve.
The host countries often complain MNC of the following EXCEPT:
tax avoidance
inappropriate technology transfer
siphon-off most of their benefits into home country
job decrease
MNC may cause the following harmful effects on the host country EXCEPT:
loss of sovereign and domestic research activity
tax avoidance through transfer pricing
transfer of appropriate technology
siphon-off the host country's benefit
MNCs may cause the following negative impacts on the host country EXCEPT:
export of domestic job
giving away the home nation's technological advantages
tax avoidance through transfer pricing
development of human resource
MNCs can .........................by artificially overpricing components delivered to an affiliate in tax-high nation and underpricing products delivered from an affiliate in tax-high nation MNCs
minimize tax bills
inflate reported profits in high-tax countries
increase import tariffs
raise operating costs without tax benefits
Brain drain is the problem of
migration of unskilled labor
migration of skilled labor
migration of untrained labor
migration of both skilled and unskilled labor
Labor in host developing countries generally
opposes an inflow of FDI
favors an inflow of FDI
is indifference to FDI
we cannot say without additional information
Some of the international labor migration occurred because of the following EXCEPT
to escape political and religious oppression
to expect higher real wages and income abroad
to expect better lives abroad
to acquire a foreign firm
If workers are migrating from country A to country B, then workers in country A … and employers in country A …
lose; lose
lose; gain
gain; lose
gain; gain
The US and other developed countries impose the following policies on migration:
facilitate immigration unskilled workers and regulate immigration of skilled workers
set immigration barriers to unskilled workers and encourage immigration of skilled workers
encourage immigration of both unskilled and skilled workers
a, b and c
Ways in which potential host countries try to attract more FDI include all of the following EXCEPT
low corporate income taxes
membership in trade bloc
requirements for sharing ownership, employing local workers, and using local resources
subsidizing transportation and telecommunication services
In most cases, the foreign affiliate of a multinational enterprise receives:
only part of its financing directly from the multinational enterprise
most of its financing from the government of the affiliate’s host country
only a small part of its financing from local sources
most of its financing from the government of the home country of the multinational enterprise
The profits of foreign affiliates of multinational enterprises generally results in corporate income taxes being paid:
to either the host country of the affiliate nor the home country of the multinational enterprise
about equally to the host country of the affiliate and the home country of the multinational enterprise
only the host country of the affiliate
only the home country of the multinational enterprise
The figure below illustrates total output and welfare effects of international labor migration. In nation N1, the rates of real wage when there is no international migration and when there is international migration of AB of labor, that equalizes rates of real wage in both nations, respectively are:
OC and ON
OC & OF
CN & NF
OC & CF
In nation 2, the rates of real wage when there is no international migration and when there is international migration of AB of labor, that equalizes the rates of real wage in both nations are:
O’T & O’J
TH & TJ
The figure illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital that equalizes rates of return on capital (or VMPK) in both nations, the rate of returns on capital in N1 is changed by
(+NF)
(+CN)
(-CN)
(+CF)
The figure illustrates output and welfare effects of the international capital transfer. When the international movement of AB of capital occurs that equalizes rates of return on capital (or VMPK) in both nations, the rate of returns on capital in N2 is changed by
+O’T
TH
-TJ
+TH
The figure illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital that equalizes rates of return on capital (or VMPK) in both nations, the yield for N1’s owners of noncapital factors is changed by the area of
+CNRG
-CFG
CNEG
+CNEG
The figure illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital that equalizes returns on capital in both nations, the yield for N1’s capital owners is changed by the area of
-OCGA
+OCGA
-CNEG
+CNRG
The figure illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital that equalizes the rates of return on capital in both nations, the yield for N2’s owners of capital is changed by the area of
+THME
-THE
-THMR
-THME
The figure illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital that equalizes returns on capital in both nations, the yield for N2’s owners of noncapital factors is changed by the area of
-AMHO’
+EMHT
-MHITR
+EMHT
The below figure illustrates total output and welfare effect of international labor migration. The GDP of N1, when there is no international migration of labor, is denoted by the area of
OFGA
OFEA
ONEGA
ONKA
The below figure illustrates total output and welfare effect of international labor migration. The GDP of N1, when there is international migration of AB of labor, is denoted by the area of
OFEB
OFGA
ONEGA
ONKA
The below figure illustrates total output and welfare effect of international labor migration. How much will GDP of N1 change when there is international migration AB of labor:
-EKG
-EMG
+EKAB
EGAB
GDP of N2, when there is no international migration of labor, is denoted by the area of
O’JEB
O’HMA
O’JEKA
O’JMA
GDP of N2, when there is international migration of AB of labor, is denoted by the area of
O’JMA
O’TEB
O’HMEB
O’JEB
How much will GDP of N2 change when there is international migration AB of labor?
+HMET
-EKG
+EKM
+AMEB
National income of N1, when there is international migration of AB of labor, is denoted by the area of
OFEB
OFEKA
ONEGA
OCGA
National income of N2, when there is no international migration of AB of labor, is denoted by the area of
O’JMA
O’JEKA
O’JEB
How much will national income of N2 change when there is international migration of AB of labor:
+HMET
−EKG
+EKM
d. +EGM
Which is NOT a reason for private foreign direct investments?
horizontal and vertical integration
to maximize profits and diversify risks
to stimulate development
to avoid tariff
Which of the following is NOT a beneficial effect of direct investment on the Home country?
Transfer of technology
Higher profits
Risk diversification
Avoids the possible loss of export markets
______ occurs, according to the U.S. Department of Commerce, whenever a U.S. citizen, organization, or affiliated group takes an interest of 10% or more in a foreign business entity.
Portfolio investment
Foreign direct investment
Official development assistance
Oversea remittance
Foreign investors prefer direct investments to portfolio investments because they want to
diversify risk and gain higher rate of return on capital
export product to the host market
transfer technology to local investors
retain direct control over their unique production knowledge or managerial skills
Which of the following would NOT increase the chances that an individual will migrate?
An increase in the expected wage rate in the host country.
A decrease in the expected wage rate in the home country.
A decrease in the expected wage rate in the host country.
A decrease in the cost of traveling between countries.
One important welfare effect of foreign investments on home as well as host countries results from
comparative advantages of the host country.
abundant production factors of both countries.
different rates of taxation and foreign earnings between host and home countries.
competitiveness of the home country.
Foreign investments may affect both host and home countries in regard to the followings EXCEPT
redistribution of domestic income between labor and capital.
change of terms of trade.
improvement or difficulties of balance of payment.
foreign exchange reserve.
Comparative advantage, economies of scale, government barriers to trade, and trade blocs are all ______ that Multinational Corporations must consider in determining whether or not to enter a new foreign market.
location factors
internalization advantages
inherent disadvantages
internalization advantages
Multinational Corporations' competitive advantages are based on the followings EXCEPT
economies of scale in production, and international market information.
financing, and research and development (R&D).
horizontal and vertical integration.
locational advantages.
Multinational Corporations are in better bargaining power than local firms because of the followings EXCEPT
stronger financial position.
control or management of global production network.
possessing local market network.
improvement of local human resource and technology capability.
The host countries often complain Multinational Corporations of the followings EXCEPT
tax avoidance.
inappropriate technology transfer.
siphon-off most of their benefits into home country.
job decrease.
Multinational Corporations' foreign direct investments are accused by the home countries of
reducing national income.
reducing domestic jobs.
raising tariff.
reducing rate of return on capital.
Multinational Corporations may cause the following harmful effects on the host country EXCEPT
loss of sovereign and domestic research activity.
tax avoidance through transfer pricing.
transfer of appropriate technology.
siphon-off the host country's benefits.
The host countries have seriously complained against Multinational Corporations firstly because of
strong bargaining power with the home government.
improving the host countries' technological capability.
dominating the host economies.
developing human resource in the host countries.
Multinational Corporations may cause the following negative impacts on the host country EXCEPT
export of domestic job.
giving away the home nation's technological advantages.
tax avoidance through transfer pricing.
Multinational Corporations can ________ by artificially overpricing components delivered to an affiliate in a tax-high nation and underpricing products delivered from an affiliate in a tax-high nation.
minimize tax bills
reduce prices
reduce production cost
increase production cost
Multinational Corporations’ artificially overpricing components delivered to an affiliate in a tax-high nation and underpricing products delivered from an affiliate in a tax-high nation are called
intra-firm transfer of inputs
inter-firm transfer of outputs
transfer pricing
transfer production cost
Brain drain is the problem of
migration of unskilled labor
migration of skilled labor
migration of untrained labor
migration of both skilled and unskilled labor
Brain drain happens because of
highly skilled workers are not used effectively at home countries
home country encourages migration of skilled workers
home countries have too many skilled workers
skilled workers are unemployed at home countries
The brain drain refers to the transfer of
technology from developed to developing nations
skilled labor and professionals from developed to developing nations
unskilled labor from developing to developed nations
skilled labor and professionals from less advanced to more advanced nations
The host country gains ________ from brain drain.
higher revenue from tariff
remittances from emigrants
higher rate of GDP growth
higher return on education and training expenditure
Labor in host developing countries generally
opposes an inflow of foreign direct investment
favors an inflow of foreign direct investment
is indifferent to foreign direct investment
we cannot say without additional information
Some of the international labor migration occurred because of the followings EXCEPT
escaping political and religious oppression
expecting higher real wages and income abroad
expecting better lives abroad
acquiring a foreign firm
Multinational Corporations have an inherent disadvantage in competing with local competitors in host countries because
they rely on intangible assets that are difficult to finance
they do not have the same depth of understanding of local customs and culture as the local competitors have
they have to overcome the trade barriers erected in their home country
the local competitors usually receive subsidies that are not available to the foreign companies
For a country with substantial immigration,
employers lose and local workers gain
employers gain and local workers gain
the net gain to the country is the amount that the immigrants themselves gain
None of the above.
If workers are migrating from country A to country B, then workers in country A ________, and employers in country A __________.
lose; lose
lose; gain
gain; lose
gain; gain
Which of the following policies that the U.S and other developed countries impose on migration?
Facilitating immigration of unskilled workers and regulating immigration of skilled workers
Setting immigration barriers to unskilled workers and encouraging immigration of skilled workers
Encouraging immigration of both unskilled and skilled workers
(a), (b), and (c)
Potential host countries try to attract more foreign direct investment include all of the followings EXCEPT
low corporate income taxes
membership in a trade bloc
requirements for sharing ownership, employing local workers, and using local resources
subsidizing transportation and telecommunication services
In most cases, the foreign affiliate of a multinational enterprise receives
only part of its financing directly from the multinational enterprise
most of its financing from the government of the affiliate’s host country
only a small part of its financing from local sources
most of its financing from the government of the home country of the multinational enterprise
The profits of foreign affiliates of multinational enterprises generally result in corporate income taxes being paid
to neither the host country of the affiliate nor the home country of the multinational enterprise
about equally to the host country of the affiliate and the home country of the multinational enterprise
only to the host country of the affiliate
only to the home country of the multinational enterprise
The figure below illustrates the international movement of capital. Capital moved from which country to which country?
From Nation 1 to Nation 2
From Nation 2 to Nation 1
The figure illustrates output and welfare effects of international capital transfer. When there is no international movement of capital, Nation 1 and Nation 2 invest their entire capital stock domestically. The rates of return on capital in Nation 1 and Nation 2 are respectively denoted by the length of which pair of segments?
ON and O’T
CN and TH
OF and O’J
OC and O’H
The figure illustrates total output and welfare effects of international labor migration. The rate of real wage in Nation 1 when there is no international migration and when there is international migration of AB of labor that equalizes real wages in both nations, respectively, is denoted by which pair of segments?
OC and ON
OC and OF
CN and NF
OC and CF
The figure illustrates total output and welfare effects of international labor migration. In Nation 2, the rates of real wage when there is no international migration and when there is international migration of AB of labor that equalizes real wages in both nations, respectively, are denoted by which pair of segments?
O’T and O’J
TH and TJ
O’H and O’T
O’T and O’H
The figure illustrates output and welfare effects of international capital transfer. When there is international movement of AB of capital that equalizes rates of return on capital (VMPK) in both nations, the rate of return on capital in Nation 1 is changed by which amount?
(+NF)
(+CN)
(-CN)
(+CF)
Suppose the world has two nations with two production factors: capital and others. Nation 1 owns OA capital stock, Nation 2 owns O’A capital stock; all capital is fully invested. VMPK1 is Nation 1’s curve of value of marginal products of capital at various levels of capital investment. VMPK2 is Nation 2’s curve of value of marginal products of capital at various levels of capital investment. Free international capital movement is allowed. The figure below illustrates output and welfare effects of the international capital transfer. When the international movement of AB of capital occurs, that equalizes rates of return on capital (or VMPK) in both Nations, the rate of return on capital in Nation 2 is changed by
(+ O’T)
(-TH)
(- TJ)
(+TH)
Suppose the world has two nations with two production factors: capital and others. Nation 1 owns OA capital stock, Nation 2 owns O’A capital stock; all capital is fully invested. VMPK1 is Nation 1’s curve of value of marginal products of capital at various levels of capital investment. VMPK2 is Nation 2’s curve of value of marginal products of capital at various levels of capital investment. Free international capital movement is allowed. The figure below illustrates output and welfare effects of the international capital transfer. When there is international movement of AB of capital, that equalizes the rates on return on capital in both Nations, the yield for Nation 1’s owners of noncapital factors is changed by the area of
(+CNRG)
(-CFG)
(-CNEG)
(+CNEG)
Suppose the world has two nations with two production factors: capital and others. Nation 1 owns OA capital stock, Nation 2 owns O’A capital stock; all capital is fully invested. VMPK1 is Nation 1’s curve of value of marginal products of capital at various levels of capital investment. VMPK2 is Nation 2’s curve of value of marginal products of capital at various levels of capital investment. Free international capital movement is allowed. The figure below illustrates output and welfare effects of the international capital transfer. When there is international movement of capital of AB, that equalizes returns on capital in both Nations, the yield for Nation 1’s capital owners is changed by the area of
(-OCGA)
(+OCGA)
(-CNEG)
Suppose the world has two nations with two production factors: capital and others. Nation 1 owns OA capital stock, Nation 2 owns O’A capital stock; all capital is fully invested. VMPK1 is Nation 1’s curve of value of marginal products of capital at various levels of capital investment. VMPK2 is Nation 2’s curve of value of marginal products of capital at various levels of capital investment. Free international capital movement is allowed. The figure below illustrates output and welfare effects of the international capital transfer. When there is international movement of capital of AB, that equalizes the rates of return on capital in both Nations, the yield for Nation 2’s owners of capital is changed by the area of
(+THME)
(-THE)
(-THMR)
(-THME)
The figure below illustrates output and welfare effects of the international capital transfer. Free international capital movement is allowed. When there is international movement of capital of AB that equalizes returns on capital in both Nations, the yield for Nation 2’s owners of noncapital factors is changed by the area of
(-AMHO)
(+EMHT)
(-MHTR)
(+EMIT)
The below figure illustrates total output and welfare effects of international labor migration. The gross domestic products (GDP) of Nation 1, when there is no international migration of labor, is denoted by the area of
OFGA
OFEA
ONEGA
ONKA
The below figure illustrates total output and welfare effects of international labor migration. The gross domestic products (GDP) of Nation 1, when there is international migration of AB of labor, is denoted by the area of
OFEB
OFGA
ONEGA
ONKA
The below figure illustrates total output and welfare effects of international labor migration. How much will GDP of Nation 1 change when there is international migration of AB of labor?
(-EKG)
(-EMG)
(+EKAB)
(-EGAB)
The below figure illustrates total output and welfare effect of international labor migration. Gross domestic products (GDP) of Nation 2, when there is no international migration of labor, is denoted by the area of
O’JEB
O’HMA
O’JEKA
O’JMA
