In the graph below, if Japanese capital in Japan is 6,000 and if American capital in America is 4,000 and if no capital movement is allowed, then (compared to the case where there is free movement of capital), identify the areas Japan gains/loses, the Us gains/loses, and the world gains/loses. Explain your answer. 

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Percent per year (for rates of return, and MPK) Percent per year 8. f 5 a MPKAmerica h MPK japan 4,200 4,800 6,000 10,000 Kj = Capital in Japan - KA = Capital in AmericaH %3D -W, = Japan's wealth -WAH - World capital = World wealth 2. Percent per year (for rates of return, and MPK) Percent per year 8. f 5 a MPKAmerica h MPK japan 4,200 4,800 6,000 10,000 Kj = Capital in Japan - KA = Capital in AmericaH %3D -W, = Japan's wealth -WAH - World capital = World wealth 2.

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Compared to free capital movement Japan gains the areas g and h On th... View the full answer