“Immigrants and Their Remittances”

1. Read “Immigrants and Their Remittances” (p. 159). Construct a brief paragraph (or two) in which you describe the potential costs and benefits of a “brain-drain tax.”
2. In the neoclassical framework international factor flows are presented as a substitute for international trade flows, and therefore a net outflow of capital potentially jeopardizes capital-intensive production in the Home country. Read “How U.S. Investments in Mexico have Increased Investment and Jobs at Home.” Construct a brief paragraph (or two) in which you compare and contrast the arguments of this article with the predictions of the neoclassical framework.
3. Read “Geography and Trade.” Using Krugman’s insights, construct a brief paragraph (or two) in which you outline potential government (federal, state and/or local) policies that might be relevant for encouraging successful export industries.

Sample Solution