International Labor Mobility International Labor movement Suppose that workers are able to move between the two countries Home workers would like to move to Foreign until the marginal product of labor is the same in the two countries This movement will reduce the home labor force and thus raise the real wage in Home This movement will increase the Foreign labor force and reduce the real wage in Foreign Copyright C 2003 Pearson Education, Inc Slide 7-7Copyright © 2003 Pearson Education, Inc. Slide 7-7 ▪ International Labor Movement • Suppose that workers are able to move between the two countries. – Home workers would like to move to Foreign until the marginal product of labor is the same in the two countries. – This movement will reduce the Home labor force and thus raise the real wage in Home. – This movement will increase the Foreign labor force and reduce the real wage in Foreign. International Labor Mobility