During the 1980s and 1990s, the United States experienced asignificant inflow of capital from other countries. Forexample, Toyota, BMW, and other foreign car companies built autoplans in the United States.
Using a diagram of the US labor market, show theeffect of the capital inflow on the average wage paid to USworkers. the demand curve will shift to the right and the wages for US workers will increase due to the inflowof capital. Equilibrium will increase as well. the graph will include wages on the yaxis and quantity on x axis.