Informal v. Formal Remittances - Assignment Example

In this case, the transfer of money across the borders becomes an issue of primary importance for many families internationally (especially when these families are located in developing countries). In practice, it has been found that the transfer of money internationally can present significant failures especially when the firms involved do not take the appropriate measures for the protection of the consumer. However, in the case of workers, such an outcome can lead to severe consequences (the financial support of the family faces a delay within unknown outcomes).

In the literature, the transfer of money across the world has been an issue extensively analyzed. Most of the relevant studies prove that the lack of appropriate technology is not the case in the majority of the cases in which the transfer of money has not been completed. Rather, the failure of persons involved to take all appropriate measures for the appropriate completion of the procedure and the protection of the customer is involved.The transfer of money across countries has become one of the most usual forms of financial transactions across the world.

Remittances, as these transactions are characterized, are a common phenomenon, especially in developing countries. The current paper refers specifically to informal remittances emphasizing their advantages for migrants and their families especially if compared to formal remittances. In accordance with the statistics revealed in relation with this issue, remittance is considered to be a financial activity of primary importance for many people around the world – because a high percentage of families in developing countries (but also in developed ones) is depended on the money sent to them by their relative (or husband/ wife) working abroad.

In fact, in accordance with a report published by the World Bank (2007) ‘remittances, funds received from migrants working abroad, to developing countries.