ECO 2121 Lecture Notes - Kit Kat
21 Apr 2014
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Bonus 1 mark assignment due march 10 in class 7 p. m. : Topic: movement of labour and capital between countries 1. Topic: movement of labour and capital between countries: why might a labour group support limitations on the outflow of fdi, for some countries remittances account for a larger source of income than foreign aid. Explain: assume that mexico receives an inflow of fdi. Suppose two factors (labour and capital) are used in the production in two industries (food and televisions). Further assume that televisions are capital-intensive as compared with food. Use the long-run specific-factors model to answer the following questions. 2: show the impact of the inflow of fdi on mexico in a diagram with output of food (televisions) on the vertical (horizontal) axis. What happens to the output of each good: how has wage changed in terms of food and televisions, suppose a country has two specific factors, land and capital.
