Movements of workers from country to country can cause shifts in the labour supply curves for both countries.

Question

Quizplus · Accepted Answer

It is true that movements of workers from country to country can cause shifts in the labour supply curves for both countries. This is because an increase in the number of workers in one country results in a shift rightward of the supply curve, indicating that more workers are willing to provide labour at each wage level. On the other hand, a decrease in the number of workers in the other country results in a leftward shift of the supply curve, indicating that fewer workers are willing to provide labour at each wage level. Thus, movements of workers can affect the labour markets of both countries.

Movements of Workers from Country to Country Can Cause Shifts