Globalization and International Labor Migration

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The dramatic spread of globalization over the last two decades has resulted in expansion of global monetary investment and trade. Even migration has expanded but not as rapidly as FDI and commerce. Yet the issue of international labor migration remains debatable. Stagnation of income, as observed by some analysts, is the main cause of labor migration. But on the other hand they give credit to this phenomenon for elevating the world income in the fastest possible manner.

The labor migrants send money to their native countries which trigger massive development in the developing economies and the extraction of laborers can encourage greater earnings or minimize underemployment for those residing in their home countries. Conversely, the monetary inflow can deteriorate massively and unpredictably as it was recently witnessed in Mexico.

For labor migrants and high-income nations, the total impact of migration is promising and more growth can be witnessed. On one hand there are more indefinite effects on flourishing nations, which may get affected from increasing brain-drain. It can be said that only momentary migration taking place among the nations situated in the southern hemisphere can provide clear advantages.

How large is the international migration phenomenon?



As per the estimates by the United Nations (UN), the supply of international migrants from 1970 to 2005 has elevated from nearly 82 million to 190 million. In the same duration the quantity of exports worldwide quadrupled while foreign direct investment, calculated in U.S. dollars, increased to more than a hundred times.

During the era of globalization, the phenomenon of international migration drew immense attention, so much so that the growth in the movement of individuals worldwide stands equal to that of goods and capital. However, from a part of world population, the supply of migrants increased marginally to 2.9% in 2005 from 2.5% in 1960.

Impact of international labor migration on globalization:

  • Effect on world revenues: Economic evaluations have recommended that even a growth of 3% in international migration could elevate world revenues more than the total global trade. Conversely these international migrants rely heavily on commercialized mediators or agents who help them with issuing visas and providing transportation. This brings into account the real monetary gains for the international migrants, the nations they migrate to and their home countries.

  • Effect on beneficiary nations: International migration, in some cases can trigger technical advancement or factors responsible for industrial reforms, such as growth in physical forms of agriculture. International migration can also have diverse impacts on financial balance which can insert heavy liability on state support systems by granting higher tax revenue.

  • Effect on home countries: Migrants sending allowance back to their home countries can trigger rapid development in developing economies and their removal can provoke greater earnings or less underemployment for those still residing in their home countries. However, migration of expertise workforce can be challenging as proficient healthcare employees and teachers in developing nations migrate for extra income.

  • Association between trade and international migration: In many industrialized nations proper financial assistance often safeguard the industries in which migrants hunt for job opportunities. There is very less consistency between the trade and migration strategies implemented by high earning nations. Improved domestic synchronization is required to reunite the two agendas.

  • Strategy implications: Many economies follow the strategy of momentary migration in which the international migrants contribute to the beneficiary economy but leave before they turn dependents. Such programs should be administered properly considering the mistreatment that these migrants face by employers and agents. Efficient contract policies demand valid supervision in order to develop the working conditions of the labors, improve precision and mutual teamwork between the host and recipient countries.

We can thus conclude that the total profits incurred by the industrialized nations are quite high. Yet the bearings of any extra migrations on the earnings of those residing in the home countries and of citizens in the receiving countries are more uncertain. While international migrants are on the advantageous position, others may lag behind in the race.

Corporate Globalization


Last Updated on 5/18/2011