Perfect labor mobility would tend to equalize real wage rates in participating countries

Accounting Mar 23, 2023

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