 Since the amount of physical capital affects MRP, and since financial capital flows can affect the amount of physical capital available, MRP and thus wages can be affected by financial capital flows within and between countries, and the degree of capital mobility within and between countries.According to neoclassical theory, over the relevant range of outputs, the marginal physical product of labour is declining (law of diminishing returns).That is, as more and more units of labour are employed, their additional output begins to decline.