Consequences Of International Migration

Question 1

What dies the Neoclassical economic theory suggest?

Answer 1

Economic efficiency is maximised when goods (free trade), capital (deregulation of financial markets) and labour (open borders) can move freely across international borders

Question 2

What political philosophy is the neoclassical economic theory at the heart of?

Answer 2

Neoliberalism

Question 3

What does free movement around the globe allow for?

Answer 3

The global economy to remain in dynamic equilibrium
Goods, labour and capital can move to where they are most needed and will attract the highest return

Question 4

What is the prediction for growth in global GDP if global border were open?

Answer 4

108.2% or 2 times as rich

Question 5

What would the problem with global open borders be?

Answer 5

The movement of people would be epic as at least 1/2 population would move to rich countries

Question 6

What is brain drain?

Answer 6

Educated people leave as they have the ability to move when they want to

Question 7

Who are the winners of migration?

Answer 7

Migrants
Non-migrants in poor country
Business in rich regions

Question 8

How are migrants winners in migration?

Answer 8

Would gain from higher earnings

Question 9

How are non-migrants in the poor country winners of migration?

Answer 9

Gain as wages would rise due to reduced labour availability

Question 10

How are businesses in the rich regions winners of migration?

Answer 10

Would see increased profits due to increased availability of cheap skilled labour (brain gain)

Question 11

Who are the losers of migration?

Answer 11

Non-migrants in rich regions
Business in poor regions

Question 12

How are non-migrants in rich countries losers of migration?

Answer 12

wages would fall due to increased availability of labour

Question 13

How are businesses in poor regions losers of migration?

Answer 13

Decreased profits due to reduced availability of labour (brain drain effect)

Question 14

What is the long term effect of open borders?

Answer 14

All should benefit from the large richer global economy but migration on this epic scale would present many non-economic challenges and threaten national identity and sovereignty

Question 15

What is the best example of a open border?

Answer 15

EU trading bloc

Question 16

What are the 2 parts of the dependency school diagram?

Answer 16

Backwash
Swash

Question 17

What is the movement of people from peripheral regions to core regions mainly made up of?

Answer 17

Selective migration of young, enterprising & educated workers seeking jobs

Question 18

What is the movement of money from peripheral regions to core regions?

Answer 18

Flow of capital (savings of periphery residents investing in growing industries of the core)

Question 19

What is the movement of people from core regions to peripheral regions?

Answer 19

Selective migration of elderly seeking retirement location

Question 20

What is the movement of money from core regions to peripheral regions?

Answer 20

Flow of capital (remittances from migrants in the core & TNCs on back offices& branch plants)

Question 21

What did Latvians migrate to places like the UK?

Answer 21

As average wage is £4000 a year in Latvia and £24000 in the UK

Question 22

What are some common misconceptions about migrants?

Answer 22

“immigrants steal our jobs”
“immigrants sponge off welfare system”

Question 23

What is the unfounded idea behind immigrants stealing our jobs?

Answer 23

Migrants cause unemployment amongst indigenous populations
Migrants cause wage rates to fall because they are prepared to work for less money

Question 24

What is actually the case for migrants in host countries and employment? (Job creation)

Answer 24

Migrants increase employment as they tend to become employers (hire people)
More buyers of products so more staff needed

Question 25

Why don’t migrants cause unemployment and wages to fall?

Answer 25

migrants (especially in the US) have different sets of skills to local workers so end up doing very different jobs

Question 26

What is the lump of labour fallacy?

Answer 26

Migrants don’t actually take up more jobs as in 2005 there were 29.3 million UK jobs, 27 million for UK born, 1.6 million for migrants and 0.6 million unfilled.

Question 27

What does the misconception that migrants are welfare sponges actually mean?

Answer 27

migrants cost the government money in the form of extra demands on welfare benefits, education and health and services and policing

Question 28

Why is the migrants being welfare sponges not accurate?

Answer 28

As they have to have worked in the UK for 12 full months to claim benefits
Most migrants are young and healthy and most who require services are old or children

Question 29

What is the average age of a migrant?

Answer 29

23

Question 30

How much less likely are migrants to receive benefits or live in social housing?

Answer 30

60%

Question 31

How much greater is migrant contribution to public finance then the cost of services they use?

Answer 31

37%

Question 32

How much more is the cost of services used by UK born residents then the tax they pay?

Answer 32

20%