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Policy makers in the USA face the predicament of promoting borderless economies which undermine their efforts of securing the borders.
Free societies havent closed borders and most individuals wish to move to other countries for white collar jobs. The United States of America is pushing for open border for legal flow of goods from Mexico and close it for drugs and immigrants.
The tragic events of 11th September 2001 made the USA take their security seriously. The government reacted by tightening security at the borders. Pay riding is a situation where individuals in a society, consume more than their fair share of a resource or they pay less than the required share of a common resource
Less permeable borders slows down the migration of human capital and trade flows. Outcomes of free riding and pay riding are similar and they generate solutions that diverge from the solutions (Appollonia&Reich 2008). The outcome leaves the United State of America in a position in which they bear a huge percentage of terrorism.
Overtime and other industrial economies have incentives to stop pay riding in the United States of America and adopt tighter security measures. The multilateral approach used to counter terrorism will progressively change from the USA to other economies. Diversion of the national output from the external to domestic market means that the solutions are likely to turn into a multilateral solution. An attempt to minimize the cost of hardened borders will result to a deeper regional trade prejudice (Johnson 2007).
It is cost effective to spend millions to stop certain individuals from harming citizens in the United States of America. War on terror will lead to the flow of goods and services from one economy to another (Johnson 2007). It is important to fight terror because it enables the economy to function in an effective manner without any interruptions. It is a costly approach due to the resources devoted in fighting terror. Tighter
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