Which of the following would one expect if there were no trade in goods but resources were free to move among countries?
A) Labor will emigrate from the capital-abundant country.
B) Labor will immigrate to the capital-abundant country.
C) Labor will immigrate to the capital-scarce country.
D) Labor will emigrate from the labor-scarce country.

Question

Quizplus · Accepted Answer

If resources are free to move, labor will move from the labor-scarce country to the capital-abundant country where wages are higher. Therefore, labor will immigrate to the capital-abundant country.

Which of the Following Would One Expect If There Were