Increase or decrease in response to immigration

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The Rybczynski Theorem states that an increase in the amount of a factor found in an economy will increase the output of the industry using that factor intensively and decrease the output of the other industry.

a. If the Rybczynski Theorem holds true, would you expect that the ratio delta(computer)/delta(shoe) will increase or decrease in response to immigration? Will this augment or diminish the effect of a disproportionate increase in immigration of low-skilled workers from Mexico to the U.S.?

Reference no: EM131164609

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