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As capital investments flow from high wage core countries to low wage periphery regions, _______________________ shifts take place in both

Sagot :

Cheap labor and raw materials.

Margin generally occur when there is a capacity to produce more with cheap labor and enough raw material for the production.

In comparison to the developing countries,  the capital investments flow from high wage core countries to low wage periphery regions.  Wage employment is far less than the daily wage earners.

Labor changes occur in both the kind of wage rate and employment. Shifts take in case both high to low and low to high variations to maintain stability both between the production procedure, employment and labor ratio . All depends on the situation of the economy in a country.

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