They believe that it will open up more chances for U.S citizens to become better innovators and come up with ideas to grow the economy. They do not need immigrants to do all of that because there are many intelligent people in America. They can do just as good as the highly skilled immigrants if not better. The U.S. can have the power to be economically flexible without as many immigrants in the country. They should keep the immigrants who bring a better impact in the economy rather than allowing low skilled immigrants to come into the
According to Dogra (2011), there are many benefits in terms of economic growth to a country. Immigration is a process which increases consumers by a large percentage. Furthermore, it is very beneficial for companies to get profit and sell their products in their relevant field. In addition to it, more and more immigrant’s leads more sales taxes it helps to a country to boost their economy. Insurance is also a advantages thing as well as increasing loans, real estate taxes for a country.
According to NAFTA guidelines, labor movement has too many incentives for job offshoring (Graceffo). As a result, a projected net of 1 million dollars U.S jobs have been lost since the ratification of NAFTA (Wallach). If the U.S were to increase protectionist policies by leaving NAFTA, employment in the manufacturing sector of the economy would improve. Also, the real GDP of the U.S Would expand, because under NAFTA style trading, workers without a college degree on average lost 12.2 percent of their income. Workers would have more money to spend on consumer goods which would increase Aggregate Demand for U.S
However, another aspect believes that entrepreneurship has a positive effect on the creation of job opportunities, which thus decreases unemployment rate. Entrepreneurship is also able to improve an economy through the actual products, services and technology that is introduces into a market. These new ideas boost economic growth. Innovation also creates a sense of competition within the market, which allows for the entrepreneurs involved to become creative under pressure. Competition is necessary in order to encourage either existing, or new entrepreneurs to constantly grow and improve, which once again improves the economic situation.
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.
Free trade agreement allows the agreeing nations to focus on their comparative advantages and to produce the goods they are comparatively more efficient at making, thus increasing the efficiency and profitability of each country. 4. OBJECTIVE OF FTA Free trade agreements typically concern on import & export terms imposed by both agreeing countries. For instances, Import tax, it is one of the critical tariffs, it can impact the market directly, making the imported goods more expensive. Thus, the existence of FTA is to negotiate with partnering country to lower their import tax.
When seen in perspective of only Natives “Immigration reduces the wages of natives in competition with immigrants by an estimate of $402 billion a year, while increasing profits or the incomes of users of immigrants by an estimate $437 billion” (Camarota). Since immigrants come to this country with no previous knowledge or education because their sole purpose to come is to find more opportunities in the United States resulting in them not having a decent economic income. In the United States, immigrants or nonimmigrants, who are uneducated pay less taxes and since their economic status is of low income they receive government aid. The government helps them to be able to have a stable living to survive by giving them food, clothing, schooling, etc. But comparing illegal and legal immigrants, those who are legalized receive more welfare for the fact that they are more eligible to more programs.
Therefore, the generated income can move down to the lower income layers of the economy. Furthermore, tax revenues the government receives both from tourists and local businesses can be used in government expenditures on health, education, science and infrastructure. In addition, tourism significantly improves export opportunities for developing countries contributing to the expansion of their economic growth. The government foreseeing these advantages implements public policies favorable for the development of tourism. (Stynes,
In consequence, there were some technological advances that were necessary and that finally reduced the costs of transportation and communication. With the ease of entry of imported products in the country, there was an increase in supply and improved the quality of national products. Thus, imported products became cheaper and nationals had a improves. Besides being a great enabler source of jobs. According to Intriligator (2003) other important advantage is that companies are able to increase their size to multinational and international level.
*It creates a sense of co-operation between nations and develops a good relation amongst them and also the other countries dependencies on the reporting country’s increase making them powerful to some extent. *Trade allows a country have access to the resources which otherwise would have been unavailable to the particular country. *when trading, the increase in exports of the reporting country is beneficial to the country and it leads to trade surplus and improves the balance of trade. *When a country actively participates in trade, it then appears more attractive to foreigner investor and the likelihood that foreigner investors will invest more increases. *last, but not the least, trade can be a great way to show your pleasure or displeasure