In order to analyze migration in the long run, it is appropriate to use:
A) the specific-factors model with free movement of labor across borders.
B) the Heckscher-Ohlin model with free movement of labor across borders.
C) the Ricardian model with no movement of labor across borders.
D) the PPF modified for three goods, three factors of production (all fixed), and three nations.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model with free movement of labor across borders is best suited for analyzing migration in the long run. This model focuses on differences in factor endowments (i.e. the amount of labor, capital, and land a country has) and how they affect trade patterns. Since it allows for free movement of labor, it can capture how migration affects factor endowments over time, which is important in understanding long-run impacts. The specific-factors model only focuses on short-run impacts of migration and assumes that labor is tied to specific industries, which is unlikely to hold in the long run. The Ricardian model does not allow for movement of labor, so it cannot capture migration's effects. The PPF modified for three goods, three factors of production (all fixed), and three nations is not well-suited for analyzing migration specifically.

In Order to Analyze Migration in the Long Run, It