International Factor Movements and Multinational Enterprises International Economics Chapter 11.
International Factor...
Transcript of International Factor...
International Factor Movements
I. Introduction
A. Labour and capital movements
B. Incidence has increased over time.
C. Examine effects for a small open economy (SOE)
II. Short-Run Effects
A. Brief Review of Specific-Factors Model
B. Consider movement of the non-specific factor from the ROW
to H
(i). Effect on real factor prices
(ii). Effect on outputs
(iii). Two case studies
Figure 5.3 Wages in Europe and the New WorldFeenstra and Taylor: International Economics, First EditionCopyright © 2008 by Worth Publishers
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(iv). Welfare effects
Table 5.5 Gains from ImmigrationFeenstra and Taylor: International Economics, First EditionCopyright © 2008 by Worth Publishers
C. Consider movement of a specific factor from the ROW to H
(i). Effects on real factor prices
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(ii). Effect on Outputs
(iii). Effect on Welfare
D. Long-Run Effects
(i). Brief Review of Heckscher-Ohlin(-Samuelson) Model
(ii). Effect on real factor prices
(iii). Effect on Outputs
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(iv). Effect on Welfare
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