Job Exportation ? What is the Main Problem
...er. It cannot be moved constantly from country to country. That is why when deciding on DFI companies need accurate forecasts for the long-term economic conditions. Therefore, what keeps factor prices unequal is nothing but the restriction of movement of people. USA and Mexico Now let?s look at the two viewpoints of this ?job export? issue for two countries, USA and Mexico. From the US point of view what happens is that companies export jobs to Mexico, creating local disturbance of the work force at home. What they are exporting in fact is economic opportunity. From the Mexican standpoint, what happens is the corporations take advantage of the cheaper labor (which, of course becomes slightly more expensive due to the increased demand) and loose environmental and all sorts of other regulations and give economic opportunity to their southern neighbors. From my standpoint what happens in the big picture is that jobs from the primary and secondary sector of developed countries are moved to less-developed countries, thus leaving theses countries in a ?less-developed? position forever. Some will argue that some service sector jobs are moved to people in poor, but educated countries like India. Again, these jobs are going to be available as long as India is less developed and offers cheap labor. If people in India become extremely competitive and now compete not only on price, but on quality of their labor, what will happen is these people will be offered to come and spend their money in US (much like in the Florida case, where 3,000 H1 visas were offered for people from less developed countries for nursing positions). Why is it impossible to fully integrate advanced countries and less developed countries? It took West Germany twelve years to integrate fully its eastern provinces and still the two parts of Europe?s most developed country have different standard of living. It will probably take decades for the US to integrate Mexico, for EU to integrate Albania, or for Japan to integrate Nepal. And all this can happen provided that all these countries have the motivation and willingness to sacrifice of the German people. Globalization has never been about free movement of people. It has always been about restricting their free movement. When the first settlers arrived at the New World, there were virtually no restrictions to their movement. Four hundred years later every person in the world needs a visa to come to the US. But pressure from immigrants from less developed countries is increasing and I will not be surprised if another war, the ?war on illegal aliens? is launched any time soon. There is another employment problem currently disputed in the USA ? the illegal workers and foreigners. This is in fact the other side of the same coin. Again we observe the same phenomenon, foreigners, mainly from Mexico, occupy large portion of the low-wage jobs. There has never been a case of illegal CEO, or even some middle-class job. Either their illegal status, or their poor education (only 3.7% of the Mexic...