Use the graph to answer questions
-This model illustrates the impact of __________________ on host country labor markets.

Question

Use the graph to answer questions 
-This model illustrates the impact of __________________ on host country labor markets.

Quizplus · Accepted Answer

The graph illustrates the impact of substitutes on host country labor markets, as an increase in the supply of foreign labor (represented by a shift of the supply curve from S1 to S2) decreases the demand for domestic labor (represented by a movement along the demand curve from point A to point B). This suggests that foreign and domestic labor are substitutes for each other, and an increase in the supply of one decreases the demand for the other.

Use the Graph to Answer Questions