Positive externalities created by human capital provide one explanation of why firms do not move more capital to low-wage areas.

Question

Quizplus · Accepted Answer

Positive externalities from human capital, such as a knowledgeable workforce, can improve the overall business environment in a particular area, increasing productivity and innovation. This can make it more attractive for firms to keep their capital and operations there, despite higher wages.

Positive Externalities Created by Human Capital Provide One Explanation of Why