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lacLor condlLlons change ln boLh quanLlLy and quallLy 1he change may come abouL because of lnLernal
clrcumsLances lor lnsLance lf savlng raLes lncrease counLrles wlll have more caplLal relaLlve Lo Lhelr
facLors of land and labor lf Lhey spend relaLlvely more on educaLlon Lhey lmprove Lhe quallLy of Lhe
labor facLor CurrenLly one of Lhe blggesL changes underway concerns relaLlve populaLlon change AL
presenL raLes 33 counLrles are pro[ecLed Lo have smaller populaLlons ln 2030 Lhan Loday prellmlnary
because of low ferLlllLy raLes such as a pro[ecLed decrease of 14 percenL and 22 presenL ln !apan and
lLaly respecLlvely ConcomlLanLly elghL counLrles are expecLed Lo an accounL for half of Lhe world's
populaLlon lncrease wlLh lndla aklsLan nlgerla leadlng Lhe pack 1hose changes are of course
lmporLanL ln undersLandlng and predlcLlng changes ln exporL producLlon and lmporL markeL locaLlons
AL Lhe same Llme Lhe moblllLy of caplLal Lechnology and people affecL Lrade and relaLlve compeLlLlve
poslLlon
Why roducLlon lacLors Move
CaplLal ls Lhe mosL lnLernaLlonally moblle producLlon facLor Company and prlvaLe lndlvlduals prlmarlly
Lransfer caplLal because of dlfferences ln expecLed reLurn 1hey flnd lnformaLlon on lnLeresL raLe
dlfferences readlly avallable and Lhey can Lransfer caplLal by wlre almosL lmmedlaLely aL a low cosL
ShorL Lerm caplLal ls more moblle Lhan long Lerm caplLal especlally dlrecL lnvesLmenL because Lhere ls
more llkely Lo be an acLlve markeL Lhrough whlch lnvesLors can qulckly buy forelgn holdlng and cell Lhem
lf Lhey wanL Lransfer caplLal back home or Lo anoLher counLry lurLher lnvesLors feel more cerLaln abouL
shorL Lerm pollLlcal and economlc condlLlons affecLs lnvesLor's percepLlon of rlsk and where Lhey prefer
Lo puL Lhelr caplLal CovernmenLs glve forelgn loans and ald noLforproflL organlzaLlons donaLe money
abroad Lo relleve worrlsome economlc and soclal condlLlons lndlvlduals remlL funds Lo help Lhelr
famllles and frlends ln forelgn counLrles
eople are also lnLernaLlonally moblle Cf course some people Lravel Lo anoLher counLry as LourlsLs
sLudenLs and reLlrees however Lhls Lravel does noL consLlLuLe labor moblllLy unless Lhey work Lhere lf
Lhey move legally Lhey musL geL lmmlgraLlon papers and mosL counLrles glve Lhose documenLs
sparlngly llnally such people may have Lo learn anoLher language and ad[usL Lo a dlfferenL culLure away
from Lhelr famllles and frlends who serve as Lhelr cusLomary supporL groups
Cf Lhe people who go abroad Lo work some move permanenLly and some move Lemporarlly lor
example on Lhe one hand some people emlgraLe Lo anoLher counLry become clLlzens and plan Lo
reslde Lhere for Lhe resL of Lhelr llves Cn Lhe oLher hand MnLs asslgn managers Lo work abroad from
perlods ranglng from a few days Lo several years and some counLrles allow workers Lo enLer for only
shorL perlods