- 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.”
- 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.
- 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
