Politics of the Global Economy: Assignment

POLITICS OF
THE GLOBAL
ECONOMY

INTRODUCTION
• Primarily ,Migration is the movement of persons from one place to the other.
• Reasons for migration could be
• Economic,
• Political
• Social,
• Environmental.
• There are economic benefits stemming from the migration of persons.
• However, there are various disadvantages of migration such as over-
population, unemployment, rise in crime rates e.t.c.
• Overall, migration of human capital, technology has greatly benefitted the
international economy.

E CO NOMI C G AI NS OF MI GR ATI ON
• Through migration of workers, there is an increase in the laborforce.
• Specifically, the immigration population increase the American labor
force by forty –seven percent and seventy percent in Europe between
2004 and 2014(O.E.C.D,2014)
• The migrants are able to fill the labor force in countries with fast
growing aged population.
• Working population ratios are boosted by the ever-growing number of
immigrants thus filling the unemployment challenges in most European
Countries.
• In addition to filling job opportunities, immigrants also pay
taxes(Campbell,2018).

LABOR MARKET GAINS
• For countries lacking trading power in foreign markets, immigrations
increases the trade gains(Chang,1988).
• With the free movement of persons from one country to the other,
there is the exchange of skilled and unskilled laborers .
• Migrant labor services are likely to increase the wages and salaries
for native workers
• Due to the fact that foreign laborers come with valued workplace
experience might boost the economic efficiency and revenue for the
foreign country .
• Migrant workers who are skilled are a huge benefit for the foreign
economy

TEMPORARY SKILL
PROGRAMS
• Under immigration, temporary migrant workers programs can be used to boost the skill
shortage of a foreign country.
• The effects of this worker programs can be both positive and negative.
• Positively, worker programs are able to fill the skill gap in the foreign country for a given
period of time.
• Particularly, in the United States of America, Migrant workers are absorbed into the agriculture
and service industries .
• However, these programs might cause a decline in domestic salaries and wages(Levin
Institute,2017).
• The fact that immigrant workers are able to temporarily fill worker skill gap s,generates
revenue for the foreign country thereby contribution to the gross domestic product of the given
foreign country.

LABOR FORCE PARTICIPATION
• Migrant labor is responsible for the increased labor participation levels.
• Particularly, the Australian labor force participation levels rose by 2%
between the year 200-02 due to the influx of migrants from other
countries(Cully, n.d).
• The migrants are able to fill employment gaps in foreign countries.
• The migrants are likely to fill employment opportunities with low wages .
• Natives tend to occupy the high wage paying employment opportunities
thereby leaving a huge unemployment gap in low paying jobs.
• This employment gap boosts the employment chances for migrants in foreign
countries.
• The employment of migrants in foreign nations enables them to partake in the
labor work force in that country.