Question

1. List and Compare the short run impacts of Immigrants and FDI on wage and rentals in Home, assuming that immigrants and FDI enter Home.

2. List and Compare the long run impacts of Immigrants and FDI on wage and rentals in Home, assuming that immigrants and FDI enter Home.

Answer 1

Migration tends to affect the investment opportunities at home. The influx of immigrants has changed the social economic state of home.

Explanation:

In the short run , immigrant's influx tends to raise the pressure on the social amenities. These people will need housing accommodation .It results in a short supply of the housing hence a rise in the price of rental units.

Increase in the FDI at home has been beneficial to the economy. In the short run , employment prospects rise .This results in an increase in the wage levels for the many unemployed people. Investments in the housing sector eases the pressure on the social amenities.

In the long run , immigration brings with its skilled workers who are essential for the production sector of the economy. Thus, improves the production capacity .Better housing structures will be built.

FDI improves the economic growth rate for a nation .This will result in improved wage levels for the workforce.

The movement of Turkish migrants into Germany will not result in a fluctuation in the capital-intensive products . Production of German's commodities is a capital-intensive process characterized by heavy machinery use. Any increase in the number of the migrants into Germany will not reduce the production cost .