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    Incentive for migration between Australia and Sri-Lanka

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    I have been asked to suppose that Australia, a land (K)-abundant country, and Sri-Lanka, a labor (L)-abundant country, both produce labor and land intensive goods with the same technology. Following the logic of the Heckscher-Ohlin model, what will be the incentive for migration once trade is established between these two countries? Now, suppose that a tariff by one country creates an incentive for labor migration. From which country to which country will be the migration? Explain how you arrived at your answers.

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    https://brainmass.com/business/motivation-in-organizations/incentive-migration-between-australia-sri-lanka-294283

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    Answer:

    If Australia is a capital abundant country, this means that the country has more capital than labor and hence it would require labor to utilize its capital. Now as Sri Lanka is a labor abundant country, the country has more labor than the capital. This indicates that there is unemployment in the country ...

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    The expert examines incentives for migration between Australia and Sri-Lanka.

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