The Relation between the USA International Relations, Immigration and the Economy - Term Paper Example

The Relation between the USA International Relations, Immigration and the Economy The world is a global village and the activities of each country in some way affect the outcome of the other states. This includes the effect on the economy and political landscape. The issue of security and other external factors has had an influence on how people move in and out of USA. The United States of America's relationship with other countries affects immigration to the within its borders. This has Negatively Influenced The Economy, Industrialization, And The American Work Force. This is a statement the essay would analysis and the major focus being the reality of the American situation as far as the immigration issue is concerned. A conclusion would be based on evidence and statistical data from various sources upon which they would be use to formulate recommendations to be adopted by government in ensure a mutual benefit to nations both on relationship and economic benefits There exists a relationship between immigrants country of origin with the political, social and political organization of a given country. Legal immigrants may prefer to move to countries that have a health relation with the designated country. The most constant factor of the migration is the manner in which the illegal immigrants move into a given country despite of the existing differences between the countries of origin with the United State of America. The economic benefits that inter country relation brings is an improved. The existing immigrants in USA bring with them different benefits and other negatively influences the stature of the natives. Both legal and the illegal immigrants have some parts to play in the development and economic situation of the given nation (Hipsman &Meissner, 2013). The determining factor in this case is less of the political differences and similarity but rather more of available resources and the friendly nature of the counter. The political climate and stability ensures that most immigrants to seek pastures beyond their countries boundaries. Immigrants contribute to economic growth as most poses skills that would aid their survival in the foreign country. The high levels of the immigrants into the country create a social problem to the locals. There exist high levels of unskilled laborer who illegally enter the county. The social problems that accompanies the illegal immigrants influences the nature in which decision are made by both the employers and the administration. The effect on the economy is null as those frustrated locals who migrate to other countries and counties due to low pay are replaced by the migrants who take lower pay as compared to the natives. The steady supply of labor makes it impossible for the locals to have a major impact on the overall earnings of the country. The countries relation to the immigrants’ country of origin limits trade between the two countries. Other factors that contradict with notion that immigrants are influenced by the country relation are the high figure of immigrants both legal and illegal. The factors include the surety nature of the country, the proximity of the country towards USA and external factors that include forced migration The increasing number of illegal immigrants in the USA is proofs that the movement of people to the country is more than just country relation but personal reasons. The proximity of the given country of origin to the American border is what contributes to the number of the immigrants moving into a given nation this is according to Hanson (2009). He indicates the number of illegal immigrants living in USA to be approximately 12 million. The number is seen to have an upward trend as the author indicates a daily increase of around a half a million indicating the high influx number of immigrants contradicts with the international relation aspect. The tight boarder between the united state and Mexico accounts for more than 30 percent of illegal immigrants. The immigrants illegally moving into the United States range in terms of skills to their levels of education. The healthy relationship that the two countries enjoy gives a positive signal and encourages the high levels of immigration. Hipsman and Meissner (2013) traces the levels of the immigrants moving through the Mexican border way back to the 19th century with the only difference between the two ages being the reason behind the movement. The current nature of politics in the United States of America majorly depends on the nature in which the Mexican border adds to the existing population and many move across it unnoticed (Passel & Cohn, 2010). Table 1 indicates the rates per country since 1960 (see appendix). The rate of the immigrants is only an indicator of the closeness of their country of origin. The political relation of the nations has little to do with the number of immigrants in the nation. The current economic strength is the motivating factor towards the levels of immigrants moving through the Mexican border. The expectation of each immigrants through the boarder is to ensure that they enjoy specific benefits that the economy that the economy provides. Most of these immigrants fail to achieve their targets upon arrival in the country while others get adopted into the American system with many using the non organization platform to engage themselves into economic activities. The other reasoning behind their involvement in the economic activity included new reforms on illegal immigrants. Borjas (2004) indicates the reforms by the bush regime on illegal immigrants in that the existing ten million immigrant where to be handed with temporary working permits and be adopted into the country persons registration. The move was to ensure an increase in the labor supply market. The availability of labor hence ensures the increase in investment with most business being encouraged by the level of labor and hence expanding their production line with an effort of ensuring that the available labor supply is used o cover the demand. In a logical bit the labor market being enhanced by the new immigrants would tend to be cheaper than the existing labor market and hence ensuring reduced cost of production. The negative political and diplomatic relation of a given country with the United States of America according to Meyer (2000) influences the formulating regulations. These regulations controls the movement of its citizens from the country to other unsafe destinations but at the same time does little to control movement into the country, this indicates an increase of Ten million people into the labor market. Reduced cost of production encourages the levels of attention from local investor who on the other hand ensures an increased level of revenue submitted to the government through taxation. The health nature of the environment eventually encourages more investors and ensures expanding of existing business with an aim of absorbing the labor market supply. This eventually reduces the levels of unemployment as many of the locals find their way into the industry either as laborers or as supplies. The direct and indirect nature in which the industry creates employment to the locals eventually increases the country’s GDP by a given percentage. The locals also may enjoy the benefits that these immigrants bring to their own revenue as the housing demand may increase due to the increased population. The housing business would eventually benefit from the new immigration reforms, which would be a positive to the government levels of revenue as the property owners have the obligation of paying taxes. The nature of legal migrants has also been on the rise. Political relationship between USA and any given state does not have any effect on the number of immigrants moving into the country. A number of immigrants move into the country a way of education, political asylum and seeking job and business benefits that the country . A high number of immigrants are encouraged by the reforms and friendly nature of the American policy on population. Meyer (2000) indicates the policy of issuing visas based on the government decision on skilled and unskilled labor perceptive or the internal welfare and economic or social benefits the individual would have to the economy of the state. The change in policy is discriminative of the immigrants based on their country of origin. The country of origin may have political and other differences from those advocated by the state but it remains a contributor towards the levels of immigrants moving into United States of America. Different states in the country posses different immigration policies that regulate the nature in which the immigrants mingle and carry out their businesses in the country. Many political and economic analysis states how the movement of people are more dependent on personal and economic value of both the designated country and individual benefits. Using this argument the United States encourages immigrants as long as they do not pose a threat to the national security. Hobbs (2012) states the positive contributing the immigrants have contributed to the labor market. He also disagrees with the notion that these immigrants have led to job displacements and other negatives towards the economy of Alabama. The state has a low level of unemployment despite an increased level of immigrants residing in the state. The existing laws recognize the rights of legal migrants. The political barriers that affect the interrelationship between the states residents and the immigrants being dealt with by the authorities hence, the benefits the immigrants bring to the economy including job creation and supply to the labor market. The effect has seen the levels of unemployment drop by 1.2 percent. Hobbs also indicates a survey that showed how 600 residents had acquired jobs in a period of six months after the reforms took effect (see table 2 and graph 1). The result is a positive to the economic situation of the region with the newly employed individuals having to contribute to the local economy. The figures of employment rates give account to the nature of employment the immigrants contribute to the state. The immigration policies have been adjusted due to the security situation in the country. The constant threats posed by the terrorist groups have been the reason behind the change in the reforms and policy changes on matters immigration. Some rights have been denied to the immigrant but their movement and economic activities still handed to them. The presents of the immigrants in the state has reduced the nature in which the levels of brain drain and migration by locals in an effort of seeking employment in other states. The government has embarked on efforts to tighten security by offering strict requirements before handing visas and work permits to immigrants. The federal government then is tasked with ensuring the local government sets rules that enhance security but in at the same time protect legal immigrants. The Middle East has been involved in political conflict with the United States of America and strict measures and requirements provided for immigrants originating from these countries. The levels of immigrants from the region choosing the country as their preferred destination have been on the decrease. Immigration into California has also had economic benefits to the region and the nature of immigrants range depending on origin and race. The political conflicts between the country and other states only have tightened security measures but rights of the immigrants remain protected. Peri (2007) indicates the contribution by the immigrants to the local economic growth and employment nature. She shows changing trend from 1960 through the current times. The report indicates an increased in real wages of the locals to be 4 percent. The percentage is represented by the nature in which the immigrants interact freely with locals in matters development. The only effect immigrants have to have to the wage structure is an effect to the older immigrants. The new immigrants possess low wage demand and as a result prompting the employers to adopt their demands and push the wages downwards. Existing law on minimum wages protect the locals and hence they enjoy a constant wage structure and in some cases improved wages. The state of California represents the nature and structure of the government towards protecting the wages and employment of natives. The natives according to the states laws have to operate within a given wage range to prevent structural unemployment and migration of the locals to other states. The overall contribution of the legal and illegal immigrants to the size of the economy is enormous. Borjas (2006) argues that the involvement of the immigrants despite the nature of relation between the country of origin and the USA to contribute to 11 percent GDP growth a figure that is approximately 1.6 trillion dollars. The effect is an increase as compared to the locals’ contribution to the US economy. The impact of the immigrants to the wage structure to manufacturers and other users of the immigrants indicate an increase in profits that are estimated to be more than 400 dollars annually. Camarota (2013) indicate the competitive nature in which the immigrants provide to the labor market. It has increased the availability of skilled labor as their cheap nature has forced the locals to invest in education as way of increasing their competitiveness. The result is a constant supply of skilled labor to the market, which hence increases quality of the output. The quality output of exports increases its competiveness in the international market. The extension to the international market is what contributes to the income of the firm involved and on increase the government involvement through. The negative impacts of the immigrants cannot be ignored. Camarota (2013) indicates an impact of the immigrants to the labor market to be more visible to the local youth and unskilled population. The rate of employment of the youth is on the minimal, as industries prefer immigrants to the local youth. The rate of unemployment to the same youth hence becomes high and therefore creating a conflict between locals and the immigrants. The impact is also related to other social problems affecting the locals. The negative relationship that the country may enjoy because of security concerns may reduce the rate of the number of immigrants to the USA. The result is availability of labor to the local youth population and the unskilled nature. The nature would increase the productivity of the existing population. The reduced working age by natives may have a positive impact on the social structure, which eventually encourages the level of investments. The availability of labor encourages many locals to specialize in different fields and hence take part in the educational field. The report by Camarota (2013) indicates the number of immigrants working in the manufacturing and business sector to be 5.3 million by the years 2000. The strict regulating on immigration is aimed at regulating the amount of immigrants moving into USA and hence the levels of job opportunities available in the country ensure a balance and equal distribution of the labor market to both the locals and natives. The report gives a changing trend to be visible in the given 13 years and by the years 2013; the locals enjoyed a more secured working environment. Positive relation with the international community is an encouraging factor towards the levels of immigrants moving into the country. The influx o the immigrants ensure a high labor supply more than the demand. Those locked out by the market would tend to engage in illegal activities such as drug trade. The drug trade adds no value to the economy as most of the activities are not taxed and hence the unregulated nature of the trade results to an increased money supply. The money supply hence has an effect to the value of the dollar, as inflation is usually the result of the activity of the local currency. The low value of the local currency eventually has a negative effect to international trades with many more imports than exports being experienced. Enchautegui et al (2013) indicates that those absorbed by the economy usually create high competition to locals and hence most of the locals are then forced out of the market due to factors contributed by the immigrants. The result of this is the migration of the locals out of the region to seek other opportunities from other states. The brain drain affects the economy of the state of origin while at the same time increasing the levels of urgency by the government towards addressing local structures. A stable economy has the capacity of sustaining the local demands and at the same time address the foreign element in both immigrants and foreign policies. The existing multinational companies having their origin in the United States may shift their production base. This is evident in companies such a Coca-Cola and apple inc. Apple Inc shifted the manufacturing of their smart phone and Ipads to china. The availability of cheap labor in their new location and the government new policy on immigration is the reason behind the move by the companies. The security concerns have reduced the movement of immigrants into the United States of America. The reforms have mostly affected mostly affected immigrants from Asia and Africa who form the majority of the labor market and consumer market. The result of the relation of USA and the concern country has had increased economic benefits to the nations as companies relate to these countries as a way of finding the labor market and leaving gap to the American populating. Oakford and Lynch (2013) indicate the political health of these countries t be the motivating factors towards the relocation. The remaining population then will have to fight for fewer opportunities available to the market. In conclusion there tend to be no relation between the number of immigrants moving into USA and their political and ideological differences. The measure only tightens security protocols but does less to regulate their movement. from the essay it is wrong to assume that, The United States of America's relationship with other countries affects immigration to the within its borders. This has negatively influenced the economy, industrialization, and the American work force. The economic benefits of the immigrants towards the economy are a fact to be reckoned with. The international trade focuses on the mutual benefits assumptions and when countries tend to have a hostile trading environment they shift the market and with the same number of sales, then the effect to the economy would be minimal. The existing labor supply is adequately enough and the supply meets the market demand. Given any negative relation between countries it would be impossible for those living in the country to shift base thus the market utilizes the labor supply to realize maximum benefits. Works cited Borjas, George .Increasing the Supply of Labor through Immigration: Measuring the Impact on Native-born Workers. Center for immigration study. 30 Apr. 2004. Web. 26 Apr. 2014 Borjas, George. “Native Internal Migration and the Labor Market Impact of Immigration”. Journal of Human Resources.vol, 41, 221-258. 2006. Print Camarota, Steven. “The Fiscal and Economic Impact of Immigration on the United States”. 8 Mar. 2013. 25 Apr. 2014. Enchautegui, María, Lindner Stephan& Erika Poethig. “Understanding the Economic and Fiscal Impacts of Immigration Reform: A Guide to Current Studies and Possible Expansions”. 30 November 2013. Web . 26 Apr. 2014 Hanson, Gordon. The Economics and Policy of Illegal Immigration in the United States. San Diego: national bureau of economic research, 2009. Print. Hipsman ,Faye,& Meissner Doris . “Immigration in the United States: New Economic, Social, Political Landscapes with Legislative Reform on the Horizon”. Migration policy institute.16 Apr. 2013. Web. 26 Apr. 2014 Hobbs, Bill. “Alabama's Unemployment Rate Plummets In Wake Of Tougher Illegal Immigration Laws”. Cnsnews. 23 Jan. 2012. Web. 26 Apr. 2014 Meyers, Eytan. Theories of International Immigration Policy-A Comparative Analysis. International Migration. Vol. 34 issue 4, 1245-1282. 2000. Print. Oakford, Patrick, & Lynch Robert. “The Economic Effects of Granting Legal Status and Citizenship to Undocumented Immigrants”. Center for American progress. 20 Mar. 2010 Web. 26 Apr. 2014. Passel, Jeffrey & Cohn D’Vera. “Unauthorized Immigrants: 11.1 Million in 2011”. 6 Dec. 2012Web. 26 Apr. 2014 Passel, Jeffrey, & Cohn D’Vera. “U.S. Unauthorized Immigration Flows Are Down Sharply Since Mid-Decade.” Pew Hispanic Center report. 1 Sept. 2010. Web. 25 Apr. 2014 Peri, Giovanni. “ How Immigrants Affect California Employment and Wages.” Public policy institute of California. Vol. 8 No. 3. 2007. Print. Appendix Sending Country Estimate Percentage Mexico 11.7 million 30 China (inc. Hong Kong) 1.9 million 5 India 1.9 million 5 Philippines 1.8 million 4 El Salvador 1.3 million 3 Vietnam 1.3 million 3 Cuba 1.1 million 3 Korea 1.1 million 3 Dominican Republic 900,000 2 Guatemala 851,000   (Table adopted from Hanson (2009)) Historical data for immigrants coming into the USA for the last 51 years Graph 1(Borjas, 2004) Table 2 (Borjas, 2004) The equations that relates the impact of the immigrants to the wage bill yijt = b pijt + si +i> x j + Bt + (si × xj) + (si × Bt) + (xj × Bt) + nijt Appendix 2 Obama reforms are more of boarder security to prevent more immigrants from entering the country Low- skilled influx was to be reduced from the number of immigrants Bush reforms were to integrate the current immigrants with the locals in an effort to account for the illegal immigrants. The national security was given more priority and scrutiny of the legal immigrants kept into consideration Bush focused more on the economic impact of the immigrants while Obama focused on the security aspect of the immigrants. The number of security concerns has shifted from foreigners to the radicalization of locals into the terrorism groups and hence the immigrant posses less danger as compared to the neglected natives. Read More