Q2: In a world with two countries where country ALPHA is poor and BETA is rich with more highly skilled workers. Using diagrams, discuss and illustrate the market and welfare effects of the following:

a) Using diagrams, illustrate & explain a situation where there is no incentive to migrate. (4 marks)

b) Modify the diagrams in (a) to discuss what would happen if the Demand for Labour in ALPHA increased substantially? (4 marks)

c) Modify the diagrams in (a) to discuss the effects of a decline in labour participation in BETA country. (5 marks)