International Economics in English 8th Edition Chapter Exercises Chapter 7International Economics 8e Krugman Chapter 7 International Factor Movements1 If the world attained a perfect Heckscher-Ohlin

ute for trade flows. D) a partial substitute for trade flows. E) None of the above. Answer: D 6) Which of the following is NOT a factor that affects international labor mobility? A) Language barriers B) Cultural differences C) Immigration policies D) Wage differentials E) All of the above are factors that affect international labor mobility. Answer: E 7) Brain drain refers to A) the loss of skilled workers from one country to another. B) the gain of skilled workers from one country to another. C) the loss of unskilled workers from one country to another. D) the gain of unskilled workers from one country to another. E) None of the above. Answer: A 8) Brain drain can lead to A) a reduction in the human capital of the source country. B) an increase in the human capital of the source country. C) a reduction in the human capital of the destination country. D) an increase in the human capital of the destination country. E) None of the above. Answer: A 9) Many developing countries view emigration of skilled workers as a threat to their development because A) it reduces the size of the workforce in the source country. B) it leads to a loss of investment in education and training. C) it can lead to a reduction in the quality of services in the source country. D) it can lead to a reduction in innovation and technological progress in the source country. E) All of the above are reasons why developing countries view emigration of skilled workers as a threat to their development. Answer: E 10) Which of the following is NOT a reason why the United States has become a popular destination for skilled workers? A) High wages B) Attractive working conditions C) Generous social welfare programs D) The presence of prestigious universities and research institutions E) All of the above are reasons why the United States has become a popular destination for skilled workers. Answer: