In this theory, it explained that individual rational choice is the deciding factor for the people to migrate. Individuals choose to migrate after they had calculated the benefit of migrating and usually they expect a positive return from their movement. According to this theory, people move to places where they can be more productive. (need more) Dual labor market theory Dual labor market theory explains that international migration is caused by the demand for labor in the modern industrial societies such as the developed countries. One of the major supporters of this theory is Piore (1979) in which he argues that international migration is caused by the prevailing demand for immigrant labor that is essential to the economic structure of developed nation.
The first scholarly contribution to migration is by Ravenstein (1885:1889)’s “laws of migration”. According to his neo-classical equilibrium perspective, he saw migration as an inseparable part of development and the major causes of migration were economic. In other words, people are expected to move from low income to high-income areas, from dense areas to sparsely populated areas. This is an underlying assumption of Lee (1966)’s push-pull theory of migration. In the view of push and pull migration theory, the decision of migrate is determined by the factors to associate with the area of origin, are of destination and supply-push factors in the origin area and the network factors that link origin and destination.
The basic model that grew out of trade theory assumes perfect markets and a labour surplus in the traditional agricultural sector that is absorbed by the modern sector. The modern sector grows through capital accumulation and by poaching labour from the traditional sector (Lewis, 1954 and Ranis and Fei, 1961). Economic theory and empirical research have shown that the foundation of rural emigration to urban migration is the excess of the urban wage over the rural wage. Even other migration determinants such as distance, age and personal contacts only really reflect the fact that wage and productivity disparities
Migration policies affect the economic incorporation of immigrants in three main ways. First, migration policy can affect the economic integration of immigrants through the distribution of the various visa types by means of which immigrants enter the host country. Some countries use point-based systems to select immigrants on the basis of human capital or skills, and others use quota systems to recruit less skilled workers for specific jobs or economic sectors. Both systems imply some level of selectivity of the immigrant workforce. However, the admission of migrants via ‘noneconomic’ immigration grounds (mainly family reunification, refugees and students) also shapes the migrant workforce, as these categories of immigrants are generally entitled
a) The impacts of inter regional migration on the labour market depend on the abilities of migrants, the condition of the host economy and the abilities of local workers. They also differ between the long and short run when the labour and economy can adjust to the growth in labour supply. The immediate short run effects of inter regional migration on the employment and income of existing workers depend particularly on the extent to which migrants have skills that are substitutes or complements to those of existing workers. In case the skills of local existing workers and migrants are substitutes, immigration can be expected to expand competition in the labour market and decrease incomes in the short run. Additionally, the skills of migrants can be complementary to the local workers and all workers experience increased efficiency which can be expected to lead to a growth in the income of existing workers.
One of the main and historically early form of world economic relations is an international trade, which in the XX century became the base of the world market formation. International trade - is a form of international economic relations, which reflects the import and export of goods and services and is based on the international division of labor. Having arisen in ancient times, world trade reached a significant scale and assumed the character of stable international commodity-money relations in the XVIII-XIX centuries. A powerful impulse of this process was the creation in a number of industrially more developed countries (England, Holland, and others) the large-scale machine production, based on a regular import of raw materials from economically
However, it has been acknowledged that, in differentiated products markets, tough competition may rule the market even when only two firms compete. The reason is that in these markets the degree of competition depends on the differentiation of the product rather than on the number of competitors. Then, the extent to which the merging firms will increase prices will depend on the degree of substitution between the merging products and the remaining ones. More specifically, the potential enhancement of market power due to a horizontal merger is analyzed under the unilateral effects or coordinated effects of the merger. While coordinated effects refer to the scope of collusion, facilitated by the lower number of competitors, unilateral effects refer to the risk that the merged firm, acting independently of any remaining rivals, finds profitable to raise prices after the merger.
International trade gives companies an opportunity to open new markets in global and provide a better goods and services choice for people (Wild el al, 2008). However, when domestic companies searching for international market they will face some trade barriers. Those companies need to find the solution based on the trading theory to solve those trade barriers before entering the international market. International trade and practices International trade can identify as a zero-sum game and it also represents the GDP of each country. International trade is different country import what they need and export what they had all around the world (Abedini, 2014).
One of the most cited articles in economic integration literature is that of Abdel Jaber (1971). According to this study, welfare impacts of economic integration arrangements among developing countries should incorporate employment, productivity, and income effects in addition to the production and consumption effects. Furthermore, a number of studies have argued that economic integration among developing countries should not be treated as a tariff issue but as an approach to economic development. For instance, Roberson (1970) argued that the theories of economic integration have merely focused on gains of better resource allocation, whereas economic development is concerned with the employment of idle resources and better deployment of under-utilized resources to stimulate faster long-run growth. Another worth mentioning study is that of Mikesell (1965).
In the study, there have also been different calculations and formulae to conclude that farmers do gain more from the urbanization of their agricultural lifestyle. Agriculture has and always will be a major means of income in the Philippines, the country thrives on crops and have always relied on it. It can never be taken away completely, even if urbanization of rural areas do allow a higher income and more job opportunities for people. It would never be an option. That is why the urbanization of these rural areas that have heavy dependence on agriculture will not be affected in a way that their livelihood will be taken away from them.