Immigration contributes critically to the economy of the host country, either positively or negatively. This paper has argued that immigration should be encouraged in order to improve the host country’s economy because there are obvious benefits to the economy of the host country in terms of state revenue, the labor market, and country development. Although, some might argue that immigration leads to mass deportation, and an increase on border-patrol budget as well as a decrease in the wages of native-born, high-skilled workers. As discussed before, immigration increases gross domestic product and provide cheap services, enabling high-skilled, indigenous workers to focus on their work more, rather than doing domestic jobs, such as house cleaning. Moreover, immigrants create innovations, such as Google, and they increase the number of scientist in the U.S. As a suggestion, the host country should inspire companies to employ workers depending on their experience, so immigrants have a great opportunity to compete with the natives.
Discussion The main argument supporting authoritarianism help economic development is the state can enjoy autonomy in drawing development policy which face less resistance force from the public and more public interests oriented. When countries are developing its economy, huge investment is needed to start-up the economy and state will cut off the current consumption. The party insist for a “better future” will never win in the election. As a result, the country will never have enough resources accumulate for future economic development (Rao, 1984, p.75 as cited in Prezworski A. and Limongi L., 1993, p.54). In this sense, authoritarianism has its own advantage as it can draw and execute policy beneficial to economic development without facing the objection from citizens.
For free trade it benefits includes increase countries production, improve the efficiency of resources, lead to economic development, and boost international relation. Free trade agreement can increase countries production because it enables countries to specialize in the product that they have a comparative advantage. A comparative advantage simply means the ability to produce specific product more efficiently than another product. Therefore countries can take advantages of efficiency generated from the specific products that was produced to generate more income to the countries. In addition to that, free trade also improves the efficiency of resources as countries can allocate or trade in resources with each other freely.
The great debate between a hands off, or laissez faire, and regulated capitalism has been occurring since even before the Industrial Revolution of the late 19th and early 20th Centuries. Major corruptions lean more towards the laissez faire economic policies because there are fewer restrictions. This might be beneficial for them, but for small town companies trying to pay bills and make profits. monopolies are a worrisome thought, especially when the larger companies are wishing to expand put them out of business. Regulated capitalism is a form of hands-on policy with the government including more strict codes for the industry.
Hong et. al (2008) Added that by entering into trade liberalization agreements, exporting industries could increase their marketing expenditure to the exporting country as they had lower tax rates to pay. Fosu (1990) found that trade agreements enabled the home country to concentrate investment on the sectors that had a higher competitive advantage. Trade liberalization has is known to bring benefits to the financial sector as well. By increasing exports, a nation is able to accumulate additional foreign exchange (Kemal et al 2002), promote additional saving and investment (Todaro, 2000) which may lead to an additional growth of exports thus creating a virtuous cycle.
One of his observations was that production was improved by assigning specific tasks to individual workers and that this division of labor would increase production by allowing workers to specialize in specific parts of the production process. “The key to economic efficiency is specialization – the division of labour. Specialization has made the process thousands of times more productive.” (Eamonn Butler, 2011). “The greatest improvement in the productive power of labour, and the greater part of the skill, dexterity, and judgment with which it is anywhere directed, or applied, seems to have been the effects of the division of labour.” (Adam Smith, 1776). The division of labour is helpful as it saves time and increases a person’s skills and ability as they are repeated over and over which contributes to the efficiency.
From the cooperation among civilians by a division of labor, to the limitations of government in an effort to achieve a free and competitive market, to the prioritization of the individual profit motive and accumulation of personal wealth, Smith argues that society can succeed in such an environment. Even though Smith’s economic platform revolved around a pre-Industrial Revolution era, his solutions to economic prosperity via the free economy allowed for an adaptable and flexible system. Nowadays, the idea of pursuing one’s own self interest is viewed as narcissistic, and oftentimes overlooked due to the accumulation of personal wealth. Government regulations force wealthy individuals to give a higher portion of their wealth for the betterment of the society, which some may view as unproportionable to their benefits from living in society. Simpler, fairer ways of devising a tax regulation have been proven to promote economic growth, however the current economic platform is seen to be arbitrary and obscure.
The next positive aspect which is taken into consideration is that the developing countries now can receive sources of capital, new technologies from developed countries, which is very essential for the growth of a country. And in return, the developing countries let the developed countries’ companies do business in their countries. For instance, you can see McDonald’s store in almost every countries. In general, globalization has benefited both developing and developed nations, and became one of the most important factors that affect a country’s
Market Extension Merger: Market Extension Merger is a kind where the companies selling same or similar product lines but in different market sectors. The main idea for market extension merger is to gain access to a wide market area which in turn increases the customer base. Example: Amazon and Alibaba 4. Product Extension Merger: A type of merger that combines the companies which sells the related or similar products in the same market segments. This merger allows companies to combine their products and gives access to a wide set of customers which implies to earn huge profits.
Although economic growth and prosperity is necessary for the development of the state, there must be measures and policies to ensure that debt and austerity remains sustainable, mitigating any possibility of a widespread recession. Nevertheless, Capitalism, Globalisation and the role of large-scale private sector firms remain integral to the development of any state. Even if the possibility of an economic recession is inevitable in a capitalist world, the current system has provided jobs and opportunities for millions of people. Other economic systems such as Communism have failed to uplift people out of poverty. With that in mind, Capitalism can be regulated and reformed in order to prevent another Lehman Brothers-style collapse.