Grade 9B
Discuss the economic effects of a large increase in the number of migrants into a country.
Time Duration for submitting the Article is:
November 4th to November 11th, 2013
Write here your answer in 500 Words.
Write here your answer in 500 Words.
Migrants are people that had moved from one place to another. This has been the issue in economy considering an increase in immigration, in some countries like China or Thailand labor are paid in low wage, which make them more productive by migrating to other countries that need or want labor, for example USA. For sending countries, the short-term economic benefit of emigration is found in remittances. Remittances are funds that emigrants earn abroad and send back to their home countries, mainly in order to support families left behind. According to the World Bank, remittances totaled $529 billion worldwide in 2012, with $401 billion of that money flowing into developing nations (2013). Significantly, these figures only account for funds sent through formal channels, so the amount of remittances is likely much larger than these numbers suggest. The World Bank notes that remittances sent through informal channels could add at least 50 percent to the globally recorded flows.
ReplyDeleteHowever, the effects of immigration have also been the cause for much debate – especially in the U.S. – and not all people believe that high levels of immigration are economically beneficial. For example, the Center for Immigration Studies, a controversial non-profit discounts the positive gains of immigration. Using U.S. census data from 2010 and 2011, one CIS study concluded that, “immigration has dramatically increased the size of the nation’s low-income population… Moreover, many immigrants make significant progress the longer they live in the country. But even with this progress, immigrants who have been in the U.S. for 20 years are much more likely to live in poverty, lack health insurance, and access the welfare system than are native-born Americans”. In the global economy’s current state of financial crisis, the three economically and culturally divisive aspects of migration discussed above will likely be intensified by drastically changing labor market conditions. According to a 2009 report by the Migration Policy Institute, declining GDP in most developed countries has already led to a decreased demand for labor, with migrants bearing the brunt of job loss in areas such as construction, manufacturing, and services.
In conclusion, with some migrants losing their jobs and returning home, the financial crisis thus may have an indirect effect on economies in developing countries through its impact on migration. As explained above, many countries, such as Mexico and Tajikistan, rely heavily on money sent home from compatriots working abroad to increase their domestic GDP and spur on economic development. As the global economic slowdown forces many of these remittance-sending migrants out of a job, it is the families and communities who rely on these payments as a major source of income who suffer as well. -Valerie 9B
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ReplyDeleteCHRISTHOPER MATTHEW
ReplyDelete9Bus./03
10/11/13
According to the dictionary, the term ‘migrant’ is a person who moves from one place to another so as to find work. When a person moves from Country A to Country B, this Country B will get more money from them. First, they will get money from airport tax and other taxes a person should pay when visiting another country. Secondly, if this person is going to work for more than a year, they should make cards in the immigration office and should register themselves so both Country A and B will know where this person is located, costing expenses to them, again. Third, workers’ wages from overseas will be charged a higher rate of tax as compared to local workers. But in LEDCs (or known as Less Economically Developing Country) or countries where population is exploding, more people coming means the country will even be more populated, which will affect the country’s economy.
The most basic economic problem is economic scarcity, and the main cause of it is because a country is overpopulated; because when there are more people, automatically, there will be more and more demand for goods and services, and when there is an excessive demand, firms and producers will increase the price of goods and services because supply is getting scarce.
Rich people might survive, but what about the poor ones? If they can’t afford to buy their basic necessities, they will go for cheaper alternatives .These cheap alternatives such as junk food isn’t healthy, causing health problems and they might possibly die at a younger age, resulting in a low life expectancy of the country, which is not good for the economy and its growth. Pollution is also increasing rapidly these last few years because the increasing use of energy (such as fossil fuels) have contributed a lot towards pollution. Government will then try to reduce pollution, but it will consume a part of government’s revenue.
If people want to survive, they should earn a living by going to work. And the increase in number of immigrants has also caused a decrease in demand for labour because supply of it is very high. And lately, labour asks for a huge increase in their salaries because they think they need more, but even with a low salary, firms nowadays can’t cope up with another increase in workers’ wages because the cost of production itself is already expensive. As a result, these excessive workers will keep on being unemployed, and even several workers might not be needed by firms anymore because production nowadays uses a more developed technology and machineries that can replace these labours.
To sum it all up, a large increase in the number of migrants into a country has a really big impact on the economy of the country. The expenses of these migrants in the country will increase the GDP (Gross Domestic Product) of the country, but in the other hand, migrants coming into an overpopulated country will also give negative impacts and disadvantages to the country.
Immigration is the people that moved from one countries to another countries.It can bring a lot of advantages & disadvantages to the countries economics.The number of immigrant is increasing when they seek for a job opportunities & higher paid wages rather than working in their origin countries.A lot of the local firm would like to use the immigrant workers ,they have higher productivity compared to the local worker.
ReplyDeleteThe immigrant worker an decrease the cost of production of making goods & services in the countries,which can decrease the price of goods & services.This is good for the countries,because the aggregate demand will increase the gdp will also increase.The inflation rate will also decrease when the aggregate demand increase. But in along period of time,it my cause a drawback on the countries economics.The number of the people that immigrate to the countries in the large amounts ,will increase the completion for the local worker.When the immigrate worker have a better education&skill,which can be used to increase the productivity in the local firms,etc.The government revenue increase in a short period of time,but the government will need to spend more money on their expenditures increase the unemployement rate of the local worker.The government should give them a free education & training ,they also need to give more unemployement benefits when there is a lot of immigrate worker which is employed by the local firms.
The government should also take a certain policy to control the countries economics,for ex:they can give subsidies to the local firms,so hey can expand their branches ,they will need a lot of worker which is cheaper than the immigrate worker.It will decrease the unemployement rate of the local worker.The government should also give a lower tax rate & intrest rates which can encourage the business to grow bigger,and motivated the people in the countries to work harder to earn more wages ,when there is less tax that is imposed on their incomes.
The immigrant worker is good,but the government should also control the rate of the immigrant worker to decrease the completion with the local worker,which have a poor education & skill. immigrant worker can fill a job that need a high education & skill which is hard to do,it will attract the company to employ to employ them,it can reduce the cost of production of the products,which can increase the demand for the goods & services that is produced by the company.
The conclusion is the immigrant worker is good enough to help the economic growth of the countries,when the government can control the rate of immigrate worker.So there will be a fair competion between the immigrate worker & the local worker.The government should also encourage the worker so there will be a high incentive to work,the government can increase the working condition an the facilities that is provided to the worker when they are working.It will encourage both the immigrant and local worker to increase their productivity,and increase the economic growth of the countries.
A migrant, according to the Oxford dictionary means ‘a person who moves from one place to another so as to find work’, which also means that these migrants come from different parts of the world. These foreign people can offer many benefits towards the country’s economy, yet also create many disadvantages as well.
ReplyDeleteHaving a large number of migrants can help the economy of a country in many factors, including economic growth, increase in workforce, higher government revenue and can also lead to an incline in employment rates. In small countries, such as Malaysia, Singapore, etc. they require a large amount of Indonesian, Cambodian and Filipinos workers that work as maids, housekeepers, etc. since they have a shortage of workforce, and in exchange produce higher amount of wages towards these migrants compared to if they are paid to do their work in Indonesia. Also, migrants usually have to pay higher income taxes to the government rather than the local people, creating a rise in goverment revenue. Another factor is that migrants can create an increase in employment rates, since if these migrants are foreign investors setting their office or production company in that particular country, then more labour is needed to operate, creating an increase in employment for the country, which also leads to economic growth in 2 ways: goods produced in the country by the foreign company becomes cheaper (since it isn’t inclusive of tariffs, excise duties, etc.), creating higher aggregate demand for that product, and also because of this, local industries will become more competitive to boost demand for the product.
An example for a small country that has been what you say ‘conquered’ by migrants is Dubai. In the Dubai International Airport itself, there are 60 000 staff from 50 different countries, according to National Geographic. This number is presumably very high just to run an airport.
Although there are many advantages towards the country and its economy, it can cause major problems, such as a decrease in employment for local workers (since more jobs are being filled up), an increase in population (which tends to increase the living costs such as food, land, etc.), and might cause demand-pull inflation, since the aggregate demand for goods and services rise, while aggregate supply might not, and with more migrants in the country, the country might become too dependent on these expats. With a large number of migrants into a country, the country will have to supply more goods and services for EVERYBODY’S needs in that country, and so, it might cause a demand-pull inflation. It also makes the employment rate decrease, since with the expertise and help of these migrants, it can cause major unemployment rates as these people are more expensive to manage in the business and might have more knowledge with the international market compared to the locals. Also, with more expats/migrants from other countries, the country can work effectively and expand their market. This has worked on a particular country; Singapore. Singapore, which was once a part of Malaysia, until 1965. By then, Singapore was its own country, and since it was small, with not many natural materials, it relied on its services to get far. To build a sustainable and improved country, they attracted foreign investors, expats, and migrants from India and Malaysia. Now, the percentage of foreigners in Singapore is a staggering 1.46 millions from its total population of 5.26 million, according to: http://population.sg/resources/population-composition/#.UoDTpXBcy00
In conclusion, as well as helping the country by increasing economic growth, employment rate and government revenue, too many migrants can in fact create problems to the country, such as lower employment rate, larger population, incline of living costs and might lead to demand-pull inflation.
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ReplyDeleteImmigration can affect economy in many different ways. Immigrant in dictionary means a person who comes to live permanently in foreign country.
ReplyDeleteThe economic effects of migration vary widely. Sending countries may experience both gains and losses in the short term but may stand to gain over the longer term. For receiving countries temporary worker programs help to address skills shortages but may decrease domestic wages and add to public welfare burden. The economic effects of migration for both sending and receiving countries may also vary depending on who is moving, specifically with respect to migrant workers’ skill levels. The problem is not immigration; it is integration, especially in the labour market. If there are no jobs, the consequences are segregation, housing problems and divided cities the economic effects of migration vary widely. Sending countries may experience both gains and losses in the short term but may stand to gain over the longer term. For receiving countries temporary worker programs help to address skills shortages but may decrease domestic wages and add to public welfare burden. The economic effects of migration for both sending and receiving countries may also vary depending on who is moving, specifically with respect to migrant workers’ skill levels. The problem is not immigration; it is integration, especially in the labour market. If there are no jobs, the consequences are segregation, housing problems and divided cities
Immigrant people came to other country to search for job so they can earn money so they can buy there needs and wants. Immigrant will increase the number of labor force that will make the wages per person decrease that means the operating cost of firm will decrease this will effect selling price of goods and services. Some immigrant likely to make their own business in other country this will increase the number of jobs in the country so the number of unemployment of a country will decrease because the people are getting job decrease in poverty if the number of poor people decrease the crime rate also decease because they have money to buy there needs they no need to do a crime so they can buy there needs and wants. But immigrant people will increase the number of population in that country if a country over populated the number if unemployment will increases because too much people in the country but the job are limited and this will increase the number of crime because they are jobless so they steal other money to buy there needs.
Immigrations will be good if the number of immigrant is control so there will be no much people I
immigration is when people from other places are settling in the country, it is good for the economy and it can help develop the working environment, etc. by:
ReplyDelete- immigrants can start business - the imigrants may start a business in the particular country and will boost the economic growth, also governments will get more revenue and direct taxes from the people that they recruit
- create jobs - when they are creating business of their owns, they could help the economy to have less unemployment rates
- develop technologies
- boost earnings
although it may help the country a little more, it has its bad sides, such as : it may develop more competitors for the other businesses, and it may create a not good working environment because of discrimination, under-aged, rasicm, etc. it create a more unfriendly doings, and a lot of people then will be unemployed and can cause bad things, especially decreasing the economic objectives, and can cause other stuff such as:
-defflation : which means of continuous lower in price of goods, since people are unemployed, and no demand are there for a product, businesses will start lower prices and then will cause deflation since the price are not appropriate.
-lower indirect tax : means of lower income for the goverment, and that means goverments would get money from loans, or etc. which can cause worse conditions
- lowering economic growth
- decrease rates of savings and investments to the economy and can cause lowering AD
The condition when immigrationcan cause is bad, but it still can create more direct taxes, taxes from properties and may cause a huge success, which can recruit more emplyees, and also increasing the economy and marcro economic objectives. The unemployment rate would be lower, inflations rates would stable and low, high economic growth, and can make the AD of the economy high which can help the economy and make it developed. Governments would also get more revenue due to the reasons of the business success and the recruits thta they have employeed, but though that immigrants may help, if themselves are unemployed, the unemployment rates maybe high also, and the government would need to spend more expeditures, infrastructures, public goods, merit goods, etc. The government might not be able to help and can cause democratic activities when is not going where the citizens wants
so there are flaws and upsides of it, we cant tell if its bad or good, but its a posibily that the immigrants may do quite good.
CELINE B - 9 BUSINESS