Question

In: Economics

Do these same principles of comparative advantage apply to the international movement of labor (i.e., migrants...

Do these same principles of comparative advantage apply to the international movement of labor (i.e., migrants moving to economics where they are in higher demand)?

Solutions

Expert Solution

The principles of comparative advantage can actually e-government the international movement of labour but this is not possible in all the cases because of the following reasons

1) the individuals might choose to work or have a strong tendency towards their home country and that is why the behavioural aspect might come into play and this might not make them move

2) government restrictions and the country policies regarding free movement of goods and capital including human capital also can play a major role and for instance in the European union people can move from one place to another but countries from outside European union might not find it easy to move inside the European union as the employment of their country comes first

3) cultural shocks conditions might influence to the companies not to take the labour from other countries as a result of which this can also govern the fact that free movement of labour is not possible here.


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