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)?

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.

Rahul Sunny answered 2 years ago

Comparative advantage is one of the most prolific topics in international trade. Describe comparative advantage and...

Comparative advantage is one of the most prolific topics in international trade. Describe comparative advantage and give an example of this theory. Does the theory work or not and why?

whats the importance of international trade and comparative advantage?

Explain the difference between absolute advantage and comparative advantage. Which is the basis for international trade,...

Explain the difference between absolute advantage and comparative advantage. Which is the basis for international trade, and why? (Please Type Answer, No Handwriting)

What is absolute advantage in trade theory? What is the comparative advantage on international trade? How...

What is absolute advantage in trade theory? What is the comparative advantage on international trade? How does absolute and comparative advantage lead to specialization? What are the benefits of comparative advantage? Calculations: The following represents the production possibilities in the following two countries. Canada Mexico Good X Good Y Good X Good Y 0 32 0 24 4 24 4 18 8 16 8 12 12 8 12 6 16 0 16 0 (a) Which country has a comparative advantage...

Discussion Questions: What is absolute advantage in trade theory? What is the comparative advantage on international...

Discussion Questions: What is absolute advantage in trade theory? What is the comparative advantage on international trade? How does absolute and comparative advantage lead to specialization? What are the benefits of comparative advantage? Calculations: The following represents the production possibilities in the following two countries. Canada Mexico Good X Good Y Good X Good Y 0 32 0 24 4 24 4 18 8 16 8 12 12 8 12 6 16 0 16 0 (a) Which country has a...

How does Comparative Advantage provide the basis for international trade?

The theories of absolute and comparative advantage contribute to the explanation of the international trade process....

The theories of absolute and comparative advantage contribute to the explanation of the international trade process. Bearing this in mind, below are some of the examples of products through which the implementation of absolute and comparative advantage in each individual india assigned to study, can be implemented: 1) Cars 2) Petroleum 3) Computers 4) Pharmaceuticals 5) Gold - Discuss the likelihood that india would enjoy an absolute advantage, a comparative advantage, or no particular advantage of each of the products. ...

Theories of absolute and comparative advantage contribute to the interpretation of the international trade process. With...

Theories of absolute and comparative advantage contribute to the interpretation of the international trade process. With that in mind, here are some examples of products where you can implement an absolute and comparative advantage in every country you are commissioned to study Clothing Salt Gems Olive oil gone Discuss the possibility of Italy having an absolute advantage, a comparative advantage, or a lack of a specific advantage for each product

1. What is comparative advantage, and why is it important in international trade? Contrast with the...

1. What is comparative advantage, and why is it important in international trade? Contrast with the term "absolute advantage" and illustrate with an example (20%). 2. Briefly explain how short-term movements in the business cycle affect the trade balance (20%). Briefly explain how short-term movements in the business cycle affect the trade balance (20%).

Draw a graph for: 3. What is comparative advantage, and why is it important in international...

Draw a graph for: 3. What is comparative advantage, and why is it important in international trade? Reference: Explanation: Comparative advantage states that aggregate output is maximized when countries specialize in the production of goods for which they are the lowest opportunity cost producer, and then trade for other goods. This explains how countries can improve their situation through trade, rather than producing all goods themselves.

Question