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Globalisation is considered to be a process which is based on the ways by which trade and levels of international competition can be intensified. The proper movement of the production based factors, the movement of the goods, technology and labour. The resources can be used by the countries in an effective manner in order to enhance the levels of social welfare and growth. The theory based on common trade is thereby able to suggest that the process of globalisation is able to equalise the costs based on production and prices of the products as well (Akcigit, Baslandze and Stantcheva 2016).
This is mainly beneficial for the customers in order to conduct free trade in an effective manner. The process of free trade is also able to increase the levels of competition and the prices that are offered to the customers are also quite low. The international competition based factors have also changed due to the increase in levels of globalisation and free trade. The competition levels had existed only between the organizations and the different industries that operate in different countries. The competition has now increased between the different workers who are seem to use similar types of skills for their jobs in different countries (Andrijasevic and Sacchetto 2016).
The competition based level are sometimes beneficial for some of the workers and can also be harmful for some of the workers as well. The development of production based facilities in different countries have been able to increase competition among the workers. The major issues related to the skill based levels of the workers have been able to affect the income inequalities in Europe (Aubry, Burzy?ski and Docquier 2016).
The report is based on the analysis of international mobility of labour among the different countries. The movement of labour between different countries and the reasons behind this movement is considered to be an important factor in the field of economics. The analysis that will be made in the report is based on the ways by which movement of labour is able to affect the international organizations.
Major reasons behind the migration of labour
The major reasons behind the effective migration of labour between different countries are as follows,
- The labour and employees aim for the higher salaries which is able to attract them to the nations that provide higher levels of salaries to them. The levels of unemployment in the nations from where they belong can also lead to the immigration of labour (Betcherman 2014).
- The networks that are thereby developed among the relatives and the companions of employees in different nations have been a major reason behind their attraction.
- The levels of corruption that exists in the government of home country of employees are able to lead them towards the other countries (Cahuc, Charlot and Malherbet 2016).
The levels of migration and the international work based movements have also increased in the last few years. The employees are thereby able to affect the development of the economy and the country in which they provide their services in an effective manner. The migrant labours from the developing countries in Asia are able to provide high levels of social commitments to the economies of different destination nations of the world. The migration of skilled and educated labours have increased in a huge manner in the last ten years (Caliendo, Dvorkin and Parro 2015). The educated and knowledgeable migrants who had thereby returned to their home country had also provided effective contribution to the economy.
Suggestion on how to approach the research paper
The observation by Adam Smith based on factors related to international mobility of labour was that if the foreign country is able to provide the products at cheaper rates then it is better to buy the products from them by implementing some produce which is based on the home country itself. The organization is thereby able to gain comparative advantage in an effective manner with the help of this work process which is employed by them. The comparative advantage that is developed by the organizations plays an important role in the operations (Co?ar, Guner and Tybout 2016).
According to Dabla-Norris et al. (2015), the free trade based options are thereby provided to the organizations which are able to gain comparative advantage in the industry in an effective way. The free trade based options had been used by the organizations for conducting their operations in the later part of the 20th century. The developed countries in the world are able to restrict the free movement of the people who are not born in those particular countries. Around 3% of the total population of the world which amounts to 200 million people live in the countries in which they are not born.
The results of the World Gallop Poll, around 40% of the adults are known to inhabit poorest quintile of the nations of the world. The skilled workers are thereby ready to pay huge amounts of money in order to enter the developed countries for jobs and other purposes. The skilled workers have also been paying hefty amount of fees to the smugglers in order to gain jobs in the United States. For example, 3000 Dollars have been paid by the workers in order to cross the US border (Danakol et al. 2017).
The major reasons behind the investments that are made by the labour in order to gain jobs in the foreign countries are based on the huge opportunities that are provided to them of earning effective wage levels. The popular destinations of the migrants in this case include, the United Kingdom, the United States, Germany, France, Canada, Australia and Germany. These countries are capable of providing effective chances of improvement to the labour along with high wages as well (Decreuse and Maarek 2015). The migrants are more prone to move to these countries from the developing or the emerging countries. The skilled workers who thereby move to the United States at around 10,000 Dollars PPP in a year which is considered to be double of that of a developing country.
Discussion based on the process of international labor mobility
Figure 1 – Migration levels since 1990
Source – (Docquier, Machado and Sekkat 2015)
The wage based growth that is gained by the labour are based on the high levels of productivity that are provided to them in the developed countries like the United States. The principle of comparative advantage is thereby applied in the international labour migration based activities which is related to the creation of effective wealth. The free movement of labour from the developing countries to developed countries like the United States has been able to provide effective levels of opportunities to the employees who are an important part of the process of international labour mobility (Docquier and Machado 2016).
As discussed by Docquier, Machado and Sekkat (2015), the elimination of trade based barriers have been able to increase the levels of global wealth between the percentage of 50 and 150. The increase in levels of global capital is thereby considered to be higher as compared to that which could have been gained from the movement of capital and goods on an international basis. The free labour movement is thereby able to affect the welfare of different areas on a global basis. The principle of comparative advantage thereby states that the movement of free labour is able to increase the levels of global efficiency in an effective manner. The economic effects based on the international labour mobility cam be analysed with the help of proper analysis of the effects that this process has on the vulnerable part of the entire population of different developing countries.
The effective analysis of international labour mobility is thereby based on the economic effects that this process has on the labour and the destination countries as well. The process of immigration is thereby able to increase the levels of labour supply in an effective manner. The immigrant labour are however sometimes able to affect the native labour of different developed countries. The availability at lower prices from the developing countries can affect the jobs that are thereby offered to the natives (Docquier, Ozden and Peri 2014).
The process of substitution of native labour by the immigrants are however not always possible if the immigrants are unskilled. The unskilled labour are not capable of acting as effective substitution of the highly educated native workers of the developed countries. The subpopulations of immigrant labour are sometimes able to act as the direct substitutes of the subpopulations of the native labour (Durand 2015).
Economic effects of international labor mobility
Felbermayr, Grossmann and Kohler (2015) suggested that, the wage levels that are provided to the native workers are affected in a huge manner by the levels of immigrants in the different countries. The wages that are thereby offered to the immigrants can affect the natives and wage based levels as well. The political changes can also act as important factors which can affect the labour market in the developed countries like the United States. For example, the recent studies have been able to prove that the labour market based conditions in Miami have changed after the entry of the immigrants from Cuba. The immigrants have thereby increased the workforce of the country by 5 percent.
The entry of immigrants was based on the decision that was taken by government of Cuba to let the 125,000 citizens of the country to emigrate to Miami. However, the wage levels have not been affected by the increase in number of immigrants in the country. The relationship which is developed between the changes that take place in the number of immigrants in different countries with respect to the different labour market outcomes is an important factor. The level of immigrants has thereby started increasing in the United States from the year 1960 to 2001 (Gebel and Giesecke 2016).
The employment of the natives in different positions in the country are able to affect the immigration based activities in a huge manner. The immigrants and their employment have quite less effects on the employment of natives in the United States. The influx of the immigrants within the work process in the organizations which operate in the United States are able to affect the working hours of the natives by around 2 to 3 percent. The same effects have been found on the native labours of the countries in Europe as well (Hatton 2014). The immigration related activities in the country are thereby not able to immense effects on the wages that are provided to the natives of different developed countries. The negative effects of the wages of natives which can take place in different countries is temporary and is reduced with time.
The people who tend to remain in the emerging countries from where the immigrants have started departing may also have to face some consequences in this case. The movement of immigrants from their native countries is able to affect the wages of natives of the emerging countries in a positive manner (Meghir, Narita and Robin 2015). For example, the immigration which had occurred from Mexico to the United States between the years 1970 to 2000 had increased the wages that were provided to the workers of high schools in Mexico by around 15 percent. This example is able to suggest that the people who remain in the developing countries after the immigration has taken place are able to support the country and different industries in an effective way (Olivetti and Petrongolo 2017).
As argued by Perri and Peruffo (2016), the natives of the developing countries can act as the perfect substitutes of the immigrants. The natives are thereby able to provide effective services in order to fill in the gaps that are thereby created by the immigrants. The returns based on the human capital are quite low in the migrant based countries and the returns that are based on human capital in the destination countries are high. The high skilled labours who are capable of earning huge amounts of money in the developed countries thereby need to invest some parts of their earnings in their home country in order to contribute to the growth. The strengthening of international networks is also possible with the help of the relationships which is developed by the employees.
Figure 2 – Cross-border mobility
Source – (Simas, Wood and Hertwich 2015)
According to Picciotto and Mayne (2016), different cross-country based studies have been able to affect the development of human capital in the countries from where immigration occurs. The researches have been able to prove that the concept of “brain drain” is able to generated brain gain which is based on the emigration of the highly skilled people. The development of human capital is thereby able to play the most important role in this case. The levels of remittances to the developing countries had amounted to 404 Billion Dollars in the year 2014. The amount of remittances in the year 2011 was however only 133 Billion. The increase of remittances to developing countries had thereby been able to affect change the concept of brain drain to brain gain.
The trade activities have also been affected in a huge manner by the immigration of low skilled and the high skilled workers. The transactions related to trade between the migrant-origins and the migrant-destinations had increased in a huge way. The free trade related facilities have been provided to the organizations which operate in the developed and the developing countries (Simas, Wood and Hertwich 2015). This had an immense effect on the ways by which the welfare of citizens can be increased effectively.
According to, Vivarelli (2014), the international labour mobility based process is able to increase the chances of the citizens to follow the policies which are formed by the countries. The international labour mobility based process is not considered to be as effective as the domestic mobility. The potential influence that emigration has on the migrant-origin based countries is a major subject of interest for the reform and the quality of institutions. The movement of labour from a country to another can also have some major the environmental effects as well. This can also be a major factor behind the degradation of the environment.
The relationship has thereby been developed between the environmental impact of operations and the income levels of labour. The production activities of the organizations are thereby able to affect the environment and cause effective levels of degradation as well. The degradation of the environment is however reduced with the growth of the economy. The processes of production are therefore conducted in more environment-friendly ways in order to reduce the impact on environment (Simas, Wood and Hertwich 2015).
The effective growth of the economy is thereby able to facilitate the usage of environment friendly methods that are used for production activities. The growth of the economy in a more substantial manner is effective for the growth of the country and the development of the environment as well. The process of migration from the poor to the wealthy countries can be considered to be an important factor which has a huge impact on the environment (Perri and Peruffo 2016).
As discussed by Dabla-Norris et al. (2015), another major impact of the movement of labour on an international level is based on the ways by which urban areas are affected. The ethnic communities are affected by the migrants in different ways. The diversity based levels in the countries are increased effectively by the communities which are present in the country. The recent researches have been able to suggest that the immigrants have the ability to affect the economies of different countries in which they provide their services. For example, the financial decline which had taken place in the United States in the year 1970 had been reversed in a successful manner by the immigrants who moved in the country in the year 1980 to 1990.
The native citizens had left the country and immigrants had entered continuously. The growth in population had been able to play a major role in providing effective support to the tax structure. The immigrants have been able to play a major role in the revival of the economy of the country and in stabilizing the housing based prices as well. The different studies have proved that the immigrants have affected the development of metropolitan areas of the country in a huge manner (Perri and Peruffo 2016).
The international labour mobility based process has major effects on the economy of the developed and the developing countries as well. The development of additional growth of the countries is considered to be a major aim of international movement of leaders from one country to another. The principle of comparative advantage is applied in this case which leads to the removal of policy barriers in order to facilitate the movement of labour. The main aim in this case is to get most out of the productivity which is provided by skilled labour all over the world (Dabla-Norris et al. 2015).
The international labour mobility is thereby an important factor which helps in improving the creativity based potential of the workforce which is available in different parts of the world. The restrictions that are thereby imposed on people based on their entry in the developed countries are not helpful in the increase of international wealth in an effective manner. The different developed countries thereby need to allow the easy entry of international labour in order to facilitate the growth of economy and levels of wealth as well (Co?ar, Guner and Tybout 2016).
Conclusion
The report can be concluded by stating that international labour mobility is an important factor which is able to affect the economic growth and the increase of wealth as well. Movement of workforce is thereby important in order to provide effective opportunities to the labours in order to provide their services and improve their skill levels as well. The developed countries thereby need to develop the policies in such a manner which can be helpful in proper growth of the countries. The movement is also able to benefit the developing countries and their growth as well. The relationships that have been developed among the countries is thereby an important facilitator of the growth and development.
References
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