The migration discussion in industrialized countries (aka, the discuss of how to keep immigrants out to protect domestic wages) often forgets to notice that capital is mobile. The WSJ reports how US firms respond to employment cost differentials at home and abroad. Examining capital and labor flows in isolation is not helpful as the two are intimately linked.

Use the Heckscher Ohlin model, making use of the Rybczynski Theorem to analyze the effect of such captial flows on domestic and foreign wages.