Assuming Migration Is Unimpeded and Costless, Which of the Following

question 233

Multiple Choice

Assuming migration is unimpeded and costless, which of the following statements is most accurate about the effect of immigration on wages in both the origin and destination nations?

• A)Wages will rise in the origin nation and fall in the destination nation, and overall wage income must rise.
• B)Wages will rise in both nations, and overall wage income must rise.
• C)Wages will rise in the origin nation and fall in the destination nation, and the wage changes must cancel each other, resulting in no net change in overall wage income.
• D)Wages will rise in the origin nation and fall in the destination nation, but the effect on overall wage income depends on the elasticities of labor demand.

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Definitions:

Core Capitalist Country

A highly developed, industrialized country that is a central force in the global economic system.

Core Peripheral Country

A concept in world-systems theory describing countries that dominate in terms of advanced technology, financial resources, and economic influence, as opposed to peripheral countries that are dependent and exploited.

Geopolitically Important

Having significant influence or strategic value in global politics and international relations.

Financial Assistance

Support given in the form of money to individuals or organizations in need, often provided by governments, institutions, or private entities.