1. International Factor Mobility
In Home and Foreign there are two factors of production, land and labor, used to produce only one good. The land supply in each country and the technology of production are exactly the same. The marginal product of labor in each country depends on employment as shown in the Table. Initially, there are 11 workers employed in Home, but only 3 in Foreign. Find the effects of free movement of labor from Home to Foreign on employment, production, real wages, and the income of land owners in each country.
Production Function

2. Pre International Factor Mobility
Home:
Employment = 11
Production = 165
Real Wage Rate = 10
Real Wages = 110
Real Rent = 55
Production Function

3. Pre International Factor Mobility
Foreign:
Employment = 3
Production = 57
Real Wage Rate = 18
Real Wages = 54
Real Rent = 3
Production Function

4. Post International Factor Mobility
Home:
Employment = 7
Production = 119
Real Wage Rate = 14
Real Wages = 98
Real Rent = 21
Foreign:
Employment = 7
Production = 119
Real Wage Rate = 14
Real Wages = 98
Real Rent = 21

5. Effects of International Factor Mobility
Home:
Employment = 11
Production = 165
Real Wage Rate = 10
Real Wages = 110
Real Rent = 55
Home:
Employment = 7
Production = 119
Real Wage Rate = 14
Real Wages = 98
Real Rent = 21

6. Effects of International Factor Mobility
Foreign:
Employment = 3
Production = 57
Real Wage Rate = 18
Real Wages = 54
Real Rent = 3
Foreign:
Employment = 7
Production = 119
Real Wage Rate = 14
Real Wages = 98
Real Rent = 21