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CHAPTER7InternationalFactorMovements7.1InternationalLaborMobility:Migration?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse1Asubstitutefortradeinlaborintensiveproducts.tlFactor

MovementsInternationalLaborMobility:MigrationUnitedStatesFavoritetargetforinternationalmigrationMeltingpotoftheworldWesternEurope:Germany,Italy,andtheUnitedKingdomMexicanimmigrantsAsianimmigrantsMigrants-motivatedbyBettereconomicopportunitiesNoneconomicfactors:politics,war,andreligion?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse2?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse3U.S.immigration,1820–2008TABLE7.1InternationalLaborMobility:MigrationInternationallabormovementsEnhancetheworldeconomy’sefficiencyRestrictedbygovernmentcontrolsImmigrationActof1924RestrictingtheoverallflowofimmigrantsQuota-limitedthenumberofimmigrantsfromeachforeigncountry?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse4Priortomigration,thewagerateintheUnitedStatesexceedsthatofMexico.Respondingtothewagedifferential,MexicanworkersimmigratetotheUnitedStates;thisleadstoareductionintheMexicanlaborsupplyandanincreaseintheU.S.laborsupply.WageratescontinuetoriseinMexicoandfallintheUnitedStatesuntiltheyeventuallyareequalized.ThelabormigrationhurtsnativeU.S.workersbuthelpsU.S.ownersofcapital;theoppositeoccursinMexico.Becausemigrantworkersflowfromusesoflowerproductivitytohigherproductivity,worldoutputexpands.?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse5TheeffectsoflabormigrationfromMexicototheUnitedStatesFIGURE7.1InternationalLaborMobility:MigrationMexicanworkersimmigratetotheU.S.WorkersmigratefromusesoflowerproductivitytohigherproductivityWorldoutputexpandsMexicanlaborsupplydecreasesWagesincreaseU.S.laborsupplyincreases-WagesdecreaseHurtsnativeU.S.workersHelpsMexicanworkers?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse6InternationalLaborMobility:MigrationMexicanworkersimmigratetotheU.S.HelpsU.S.ownersofcapitalHurtsMexicanownersofcapitalIncreaseoverallworldincomeRedistributeincomefromlabortocapitalintheUnitedStatesRedistributeincomefromcapitaltolaborinMexico?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedistributedwithacertainproductorserviceorotherwiseonapassword‐protectedwebsiteforclassroomuse7?2011CengageLearning.AllRightsReserved.Maynotbecopied,scanned,orduplicated,inwholeorinpart,exceptforuseaspermittedinalicensedi

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