International Labor Mobility The redistribution of the world 's labor force Leads to a convergence of real wage rates Increases the world s output as a whole eaves some groups worse off Extending the analysis Modifying the model by adding some complications Suppose the countries produce two goods, one labor intensive and one land-intensive Trade offers an alternative to factor mobility: Home can export labor and import land by exporting the labor-intensive good and importing the land-intensive good Copyright C 2003 Pearson Education, Inc Slide 7-9Copyright © 2003 Pearson Education, Inc. Slide 7-9 ▪ The redistribution of the world’s labor force: • Leads to a convergence of real wage rates • Increases the world’s output as a whole • Leaves some groups worse off ▪ Extending the Analysis • Modifying the model by adding some complications: – Suppose the countries produce two goods, one labor￾intensive and one land-intensive. – Trade offers an alternative to factor mobility: Home can export labor and import land by exporting the labor-intensive good and importing the land-intensive good. International Labor Mobility