Effect of the capital inflow on the average wage paid

Reference no: EM1374216

In 1980s, 1990s, and the 1st decade of the 21st century, the US experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States.
a) Use a diagram of the United States capital market, demonstrate the effect of this inflow on rental price of capital in the United States and on the quantity of capital in use.
b) Use a diagram of the United States labor market, demonstrate the effect of the capital inflow on the average wage paid to United States workers.

Reference no: EM1374216

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