Using the numerical example in problem 5, assume now that Foreign limits immigration so that only 2

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Using the numerical example in problem 5, assume now that Foreign limits immigration so that only 2 workers can move there from Home. Calculate how the movement of these two 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

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

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

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Question Posted: Oct 24, 2012 11:37 PM

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Using the numerical example in problem 5, assume now that Foreign limits immigration so that only 2

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If only 2 workers can move from Home to Foreign there will be a real wage of 12 in Home and a real ...View the full answer

International Economics Theory and Policy

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