In the Heckscher-Ohlin model, how will immigration affect the sending country's production possibilities frontier?
A) It will shift it to the right.
B) It will shift it to the left.
C) It will not affect its production possibilities curve.
D) Immigration will first shift it to the left, then shift it back to its original position.

Question

Quizplus · Accepted Answer

In the Heckscher-Ohlin model, immigration from the sending country reduces its labor force, which in turn decreases its ability to produce goods. This reduction in productive capacity shifts the production possibilities frontier to the left.

In the Heckscher-Ohlin Model, How Will Immigration Affect the Sending