Immigrant Effects and International Business Activity free essay sample

The global significance of international migration4 International migration and international business activity6 Migrants and trade9 Migrants and employment10 Migrants and diaspora11 Conclusion12 Bibliography14 Immigrant Effects and International Business Activity Introduction The value of immigration for the sake of business purposes has been growing rapidly though it had a little effect on the economy of the countries because they did not have particular strict rules for the entry and exit of labor for business activities. That’s why they could not give as much good results as the import and export of other commodities among the countries. However with the passage of time and experiences the governments have made polices for immigration rules to gain more and more benefits of the procedures for global economy to be affected by introduction of new producers and technologies. Since the business requires new procedures for the international market, it will also help in better utilization of trends, resources and technologies and human resources for common interests of the countries and cross-border relations. It is necessary to analyze the main gears of international trade like foreign direct investment (FDI) of countries, knowledge and intellectual, IT, employment, recruitment, remittance and international reputation. Worldwide Importance of International Migration The international migration has grown in last three decades as rapidly as it has been the 3% of the whole world population. The report of World Migration 2008 elaborates that it had been growing from 76 million to 82 million and 190 million from 182 million during the decades 1960s, 1970s and 2005 respectively. The rate of migration of skilled and highly qualified labor o high economy and technological countries is five times greater than migration to other countries; the rate is approximately doubled than in 1970s. New emerging countries with technologies are China, Philippines, Ukraine, India and Latin America. The report of 2008 says that the benefit of US $305 had been done to developing countries by providing the faciliti es of immigration to their people. On the other hand the developed and rich countries that are providing facilities of international migration are very well known to the challenges dependency of external workers and increasing ratio of external workers over their natives. These countries are most often USA, UK, Japan, Canada and various European countries. According to a report in 2006 there had been 12% foreign-borne population of the total in such countries. In 2001 there were 1/3 of the whole migrants in Australia and USA was of graduate and post-graduate qualification level while 38% in Canada and 31% in New Zealand. The migrants face the trends in host countries to provide better incentives to the natives (local qualification and experience) over migrants except Australia. The difficulties to approach such equal incentives to immigrants themselves lead them to access self employment in these countries. In ‘Global workforce 2000’ there have made some relaxation for the immigrants for equal opportunities though the developing countries are also playing their role in providing high qualification to their people so that their citizens may contribute the growth in economy of the hosting countries. Majorly Mexicans, outside Europe and Asians are major labor providing countries to USA and European countries. International business vs. international migration The global economy has been affected positively by the migration of people of skilled qualified labor from developing countries to developed countries. It is also necessary to study the impacts of global migration on global business activity. It is worth noting that different markets have different impact of international integration. Rugman has studied widely that regional sales play vital role in most of the global businesses. Local labor markets have low level of global integration. Cultural, ideological, legal and institutional differences affect the flow of labor markets. Though labor flow is still slow mobile factor other than factors of production among international markets; introduction of IT has made it possible for the mmigrants and local economies to play in the international market by enjoying advantage of difference in cost, quality and skilled labor. The circulation of both workers and task has given way to local labor market. Knowledge Process Off shoring (KPO) can be a sort of intellectual and information arbitrage taking advantage of skilled and experienced labor at low cost in low or emerging economies. At the sam e time earnings and allowances given to migrants can be considered as arbitrage of employment opportunities in these countries. In these cases the migrants flow to the economies that provide better incentives. These conditions create imbalance in price consistency in the country. Focusing on global international arbitrage, we say that it is conceptually good for labor migration from low to high economy country because it contributes to elimination of market imperfections through valuable price information. All of this occurs due to limitations on labor movement at national and international levels. Trade vs. migrants The devastating discrepancies among the national economies play a vital role in providing valuable information. The network of migrants in different economies tend to avail better business opportunities. For instance most of Indian scientists and technologists have made their network of work in US and other large economies countries, example is Silicon Valley. Bilateral trade and immigration between low and high economies are practically significant in utilizing skilled labor and raising the low economy origin. Migrants and employment When the high economy countries provide employment to the immigrants from low economy countries, these migrants as employees play crucial role in helping their host country organization in such a way that they become the source of low cost valuable knowledge of markets. They provide them the ideas of removing obstacles and uncertainty in business. They better give the business strategies and decisions since they experience more than one exposure in practical exposures. They also help in reducing or breaking the barrier among countries. The immigrants have influenced the market entry mode in New Zealand firm that were running in Taiwan in 2001. Another study also shows that immigrant supported firm has got its position in market by the attempt of FDI as market entry mode. This was a challenging and successful role for the firm in 2009. Hence the role of immigrants and their knowledge of their homeland is demanded by the host organizations for right time right decision. Migrants vs. Diaspora The above discussed practices of the role of immigrants in raising the economy of host countries have compelled these countries to revise their policy of restrictions over immigrants. They have reduced the barriers towards immigration of skilled and qualified labors to their countries. These countries offer programs and job opportunities to low economy countries with heavy incentives. Arbitrage also plays vital function in reducing such barriers. The internetworking throughout the globe is the outcomes of immigrants’ positions in their host countries; this is a great achievement for them. Jews were the largest groups of people from different parts of the world to migrate high economy foreign lands. On the other hand for example China had social revolution and so its people were migrating to rest parts of the world approx 32 to 55 million. They had chosen Australia, Canada, US, New Zealand for their survival. They were employed at low wages because of their low aptitude and skills and difference in their language and culture. Conclusion The comparative study of migrants and their host countries with respect to international business activities gives various aspects of activities of migrants towards their host countries. These migrants were initially for several decades were not allowed approachable immigrations. There were a number of restrictions on them and they could not enjoy the incentives the local people were enjoying. But their activities and dedications towards their jobs and outcomes related to their decisions compelled the host countries to reduce the barriers toward immigrants. The arbitrage, inter- networking among developed, emerging and low economy countries bound them to give the chance to these immigrants. These immigrants had valuable ideas of market entry codes, decision making strategies and capabilities that made them to give employment to the executive places. Due to these achievements of such immigrant running firms have opened the way of diasporas among the countries.