1. Is it correct to state that every additional immigrant displaces the job of his or her resident counterpart? Explain using a supply and demand diagram. 2. Suppose the marginal product of labour...

1. Is it correct to state that every additional immigrant displaces the job of his or her resident counterpart? Explain using a supply and demand diagram.

2. Suppose the marginal product of labour curve in the sending country shifts upwards and outwards from the origin. What effect will this have on the incentive to emigrate? What factors could cause the curve to shift in this way? Explain why free trade has been proposed, in the context of both NAFTA and EU trade relations with eastern Europe, as contributing to a reduction in international inequalities and an easing of the migration problem.