Question 1

In the United States,labor unions have generally resisted efforts to implement restrictions on the number of foreigners allowed into the country.

Accepted Answer

This statement is not entirely accurate. While some labor unions have opposed certain immigration policies, others have supported them. The stance of labor unions on this issue can vary depending on various factors such as the industry they represent, the specific policy being proposed, and the political views of their members.However, it can be generally noted that some unions have taken up the cause of protecting American jobs against outsourcing and migrant labor.

Question 2

______ would likely oppose policies that permit foreign workers to migrate more freely to the United States

Accepted Answer

American workers might oppose such policies due to concerns about job competition and potential downward pressure on wages.

Question 3

Critics of multinational corporations maintain that they often abandon domestic workers in order to take advantage of lower wage scales abroad.

Accepted Answer

Multinational corporations are often criticized for relocating jobs to countries with lower labor costs, which can result in job losses for domestic workers.

Question 4

As workers migrate from low-wage Mexico to high-wage United States,wages tend to rise in Mexico and fall in the United States.

Accepted Answer

This is due to the fact that there is less supply of labor in Mexico and more supply in the United States, which increases demand for labor and wages in Mexico, while reducing demand for labor and wages in the United States.

Question 5

______ tends to benefit from increased immigration

Accepted Answer

Increased immigration often leads to a larger labor supply, which can drive down wages. This benefits owners of capital as they can hire labor at lower costs, increasing their profits.

Question 6

Due to transfer-pricing problems,multinational corporations must shift profits away from countries with low corporate tax rates to high tax-rate countries,thus absorbing a larger tax bite.

Accepted Answer

Due to transfer-pricing problems, multinational corporations often try to shift profits from high-tax countries to low-tax countries in order to reduce their overall tax burden. This is known as profit shifting, and it has been a significant issue for many governments around the world. As such, the statement in question is incorrect.

Question 7

The least common type of migration patterns is for people to migrate permanently from

Accepted Answer

The least common type of migration pattern is for people to migrate permanently from rich nations to poor nations. This is because people in rich nations generally have better living standards and economic opportunities, while people in poor nations may face poverty, political instability, and limited access to education and healthcare. As a result, there is typically a greater demand for migration from poor nations to rich nations.

Question 8

Are there any differences between the theory of multinational enterprises and conventional trade theory?

Accepted Answer

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Question 9

In the short run,the home country of an MNE will likely experience an employment decline when production is shifted overseas.

Accepted Answer

When an MNE shifts production overseas, it often results in a decline in employment in the home country in the short run. This is because the MNE may shift production to take advantage of lower labor costs overseas, leading to fewer job opportunities in the home country. However, in the long run, this may lead to new job opportunities and economic growth in the home country as the MNE invests in research and development, as well as other activities.

Question 10

The operations of an MNE have little effect on employment in either the host country or the home country.

Accepted Answer

The operations of an MNE can have a significant effect on employment in both the host country and the home country. MNEs may create jobs and support economic growth in host countries, but may also outsource jobs to lower-cost countries and impact employment in their home countries.

Question 11

What are guest workers?

Accepted Answer

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Question 12

What are the typical ways in which multinational enterprises have diversified their operations?

Accepted Answer

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Question 13

The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.

Accepted Answer

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Question 14

The "brain drain" is

Accepted Answer

The "brain drain" refers to the emigration of highly skilled or educated people from their source country to another country, which can have negative effects on the source country's development and economy. Therefore, it is of primary concern to the source countries.

Question 15

Labor migration tends to increase output and decrease wages in the country of immigration while decreasing output and increasing wages in the country of emigration.

Accepted Answer

Labor migration leads to an increase in the supply of labor in the country of immigration, which reduces wages and increases output due to lower labor costs. In the country of emigration, the reduced supply of labor leads to increased wages and decreased output due to higher labor costs.

Question 16

The United States has discouraged the "brain drain" problem by permitting the immigration of unskilled workers while restricting the immigration of skilled persons.

Accepted Answer

The statement is the opposite of the reality. The United States actually permits the immigration of skilled workers through visas such as the H-1B, while there are restrictions on the immigration of unskilled workers.

Question 17

The migration of workers from Mexico to the United States tends to exert downward pressure on the wages of native U.S.workers that compete against Mexican workers for jobs.

Accepted Answer

This statement is true according to research and economic theories on labor markets. The increased supply of labor from Mexican migrant workers can lead to a decrease in wages for native U.S. workers who have similar skill levels and compete for the same jobs.

Question 18

The theory of multinational enterprise is totally inconsistent with the principle of comparative advantage.

Accepted Answer

The theory of multinational enterprise is not inconsistent with the principle of comparative advantage. In fact, multinational enterprises can take advantage of differences in factor costs and other variables across countries to increase efficiency and profitability, which is consistent with the principle of comparative advantage.

Question 19

Developing countries have sometimes feared open immigration policies of developed countries on the grounds that highly educated and skilled people may emigrate to the developed countries,thus limiting the growth potential of the developing countries.

Accepted Answer

Many developing countries fear brain drain, where their highly educated and skilled workforce emigrates to developed countries, limiting their own growth potential.

Question 20

What are the disadvantages of forming joint ventures?

Accepted Answer

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Quiz 9: International Factor Movements and Multinational Enterprises