Question

As capital investments flow from high wage Core countries to low wage Periphery regions, _______________________ shifts take place in both (hint: the narrative is that this is MOBILE)

Answer 1

Answer: Labor

Explanation:

As a result of capital investments flowing, the labor in both the high wage countries and the low wage peripheral regions will shift due to interactions between the two labor systems.

The lower wage peripheral regions for instance, will see a rise in wages paid to their workers on account of the higher capital investment and people from these areas will move to the higher wage countries where they will be paid less which would reduce the wages paid in these higher wage countries.