D. Factor mobility (FDI and immigration)

• Labor endowment growth (short run) (13:43): Be sure to note how this will change output and national income but does not change wages and payments to capital.

• Capital endowment growth (short run) (12:57): We will analyze the impact of an increase in one particular type of capital in the domestic economy. Once again, be sure to note the impact on production and factor returns.

• Capital endowment increase (long run) (17:07): Be sure to note the impact of the endowment change on patterns of production. Understand the differences between the small and large country versions, especially how the international terms of trade affects domestic welfare.

• Labor endowment increase (long run) (12:06): This is the analog to the previous video but with endowment growth in the already abundant factor. Be sure to note the impact of the endowment change on patterns of production. Be sure to understand the differences between the small and large country versions, especially how the international terms of trade affects domestic welfare.

• Factor movements as a substitute for trade in goods. An important consequence of international factor mobility in a neoclassical framework is the expectation that movement of factors are a substitute for trade.

Advantages and disadvantage of FDI for multinational corporations.

Basics of decision to "offshore? discusses some of the general issues surrounding the decision for firms to shift operations overseas.

• A simple model of offshoring is included here.