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20. Using two-country model show that as long as there are technological differences between countries, labor...

20. Using two-country model show that as long as there are technological differences between countries, labor mobility is beneficial for the world. Decompose the benefits to immigrants’ host country and to the immigrants. What drives net benefits in this model?

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Answer #1

Labour mobility refers to the ease with which labourers are able to move around within an economy and between different economics.It deal with one of the most basic factor of economy as it explained clearly as how labour is important for growth and progress.

This consequences can be explained properly by explain this concepts and how they deal with the respective economy.

1.increase the supply of labour

2.increase unemployment

This benefit can be easily explained and it clearly define the proportional relation between all the serbiser

3.increase productivity

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