11 (MNCS & GLOBAL LABOR MARKET)
Classical economics if capital flows from rich to poor, profit rates converge &
there is industrialization; if capital flows from poor to rich, wages converge; if
there is free, all factors converge & increased productivit
PSNE When neither wants to unilaterally change strategy. For any other combo of strategies, at least 1 player would want to
unilaterally change strategy.
Pareto Efficient No if Pareto Improvement (1 better off, 0 worse off) is available