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Worker Migration Will Cause Wage Rates to Equalize Across Two

question 22

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Worker migration will cause wage rates to equalize across two countries if all of the following conditions are met except:


Definitions:

Commercial Banks

Financial institutions that provide various financial services, including deposit accounts, loans, and currency exchange.

Credit Market

A financial market where borrowers can obtain funds from investors, encompassing all transactions involving lending and borrowing.

Legal Claim

A formal assertion of one's right, typically in court, to secure a remedy or enforcement by legal means.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of liquidity.

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