3 ms·
None of this contradicts what I said. In your example, labor supply for the first country has effectively increased while demand has not. In effect, wages must
by gridlockd 6y ago
None of this contradicts what I said.
In your example, labor supply for the first country has effectively increased while demand has not. In effect, wages must fall in that country.
However, there is now increased demand on that cheaper labor, so those wages must rise, given a limited supply.