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Homework answers / question archive / Perfect labor mobility would tend to equalize real wage rates in participating countries
Perfect labor mobility would tend to equalize real wage rates in participating countries. In reality, complete wage equalization does not occur. Why? In addition, if stringent restrictions are imposed on migration, what will happen to capital in high-wage countries? Explain using the Rybczynski model.
PLEASE MAKE EASY TO UNDERSTAND AND NOT TOO LENGHTY