In the long run (the Heckscher-Ohlin model), immigration will lead to:
A) a rightward shift in the receiving country's production possibilities frontier.
B) a leftward shift in the receiving country's production possibilities frontier.
C) no change in the receiving country's production possibilities frontier.
D) a rightward shift in the sending country's production possibilities frontier.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model, immigration leads to an increase in the supply of labor in the receiving country, which in turn leads to an increase in production and output, causing a rightward shift in the receiving country's production possibilities frontier. This is because the receiving country can now produce more goods and services as it has access to more labor.

In the Long Run (The Heckscher-Ohlin Model), Immigration Will Lead