国际经济学(双语)-第11章.pptVIP

International Factor Movements and Multinational Enterprises Chapter 11 International Factor Movements and Multinational Enterprises 11.1 International Movement of Labor 11.2 International Movement of Capital 11.3 Multinational Enterprises and Foreign Direct Investment Theories 11.1 International Movement of Labor Motives for International Labor Movement Most international labor migration, particularly since the end of World War II, has been motivated by the prospect of earning higher real wages and income abroad. The decision to migrate for economic reasons can be analyzed in the same manner and with the same tools as any other investment decision. The costs include the expenditures for transportation and the loss of wages during time spent relocating and searching for a job in the new nation. The economic benefits of international migration can be measured by the higher real wages and income. 11.1 International Movement of Labor Economic Effects of Labor Movement Assuming that Country A is labor-abundant, that Country B is capital-abundant, and that trade between the two follows the Heckscher-Ohlin pattern. the movement of labor from Country A to Country B is indicated by the outward shift of the Production Possibilities Frontier (PPF) for Country B and the inward shift of the PPF for Country A. Assume that Country A is labor-abundant and exports the labor-intensive good X and imports the capital-intensive good Y prior to the labor migration and that the two countries are small ones. 11.1 International Movement of Labor This change in relative labor supplies will lead Country A to contract production of X from t0 to t1 and expand production of Y from a0 to a1. Country B, on the other hand, will expand production of X from T0 to T1 with the newly acquired labor and reduce the production of Y from A0 to A1. Workers will move from the home country to the foreign country. This movement will reduce the home labor force and thus raise the real wage in the hom