6. Using the numerical example in problem 5, assume now that Foreign limits immigration, so that only

Question:

6. Using the numerical example in problem 5, assume now that Foreign limits immigration, so that only three workers can move there from Home. Calculate how the movement of these three workers affects the income of five different groups:

a. Workers who were originally in Foreign

b. Foreign landowners

c. Workers who stay in Home

d. Home landowners

e. The workers who do move

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

International Finance Theory And Policy

ISBN: 9781292238739

11th Global Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

Question Posted: