Mexico has 2,000 units of capital and 2,000 workers. The United States has 6,000 units of capital and 4,000 workers. Clothing production is labor intensive and chemical production is capital intensive. Suppose that the United States eliminates all restrictions on immigration from Mexico. How many Mexican workers must immigrate to the United States in order for factor price equalization to occur?

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Mexico has 2,000 units of capital and 2,000 workers, while the United States has 6,000 units of capital and 4,000 workers. To achieve factor price equalization, the ratio of capital to labor must be the same in both countries. Currently, the ratio in Mexico is 1:1, while in the United States it is 3:2. To equalize the ratios, Mexico must increase its labor force by 1,000 workers.

Mexico Has 2,000 Units of Capital and 2,000 Workers