ECON 340 midterm 2 - : ECON 340 – Oct. 10 International...

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:: ECON 340 – Oct. 10 International Immigration of Labor :: Text Ch. 13 (315-317) - Estimated that 300,000 unauthorized immigrants from Mexico cross into US each year. - Three factors in determining number of migrants : (1) Demand-Pull Factor – attraction of U.S. (or jobs inside country migrating to) jobs (2) Supply-Push Factor – forces inside country that are pushing people to leave. i.e. recessions, structural changes (3) Social Networks – i.e. California attracts large share of immigrants because already large number there – so have family, friends who they can rely on. - Effect of increased migration-control efforts would-be migrants forced to try to cross border in very inhospitable desert and mountain regions where chances of being caught much lower = physical safety compromised. increase in average length of time that migrants stay in US. --------------------------------------------- Stelzer, “Immigration: Hard Facts” - In 1965, immigration laws were amended to replace a preference system that favored Western Europeans, with one based primarily on family unification - In 1913 we had 13 immigrants per 1,000 resident population, in 1994 we had 3 per 1,000 residents. - There is no relationship between immigrant concentrations and local crime rates; new immigrants are more likely to be living in family households, though immigrants may put downward pressure on wages of native-born unskilled workers and upward pressure on the taxes of those living in states favored by immigrant groups. - Overall, the net economic effect of immigration is positive. ------------------------------------------ Skerry and Rockwell, “The Cost of a Tighter Border” - Tighter border control has increased the cost of illegal entry into the US. - However, lives of the immigrants are worse once their in due to the large fees that they often still owe the smugglers -------------------------------------------- Fraser Institute, “The Brain Drain…or Gain?” - The “brain drain” from Canada to US is not a new phenomenon. In the 1950’s the movement of “brain drain” earned the name because it the movement consisted largely of highly skilled Canadians moving to the US. Between 1965-1972 because of a robust Canadian economy, unpopular US military adventures, and a Canadian policy of tax rebates to skilled immigrants rekindled a one way flow of highly skilled Americans to Canada - According to the author, the major cost to Canada from “brain drain” is that they are losing large numbers of recent graduates in key areas – the innovators of the future.
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Oct. 19 International Movements of Capital Zupnick, “U.S. FDI Abroad” and “FDI in the US” - International direct investment did not thrive during the 1950’s and 1960’s because of the existence of capital controls and currency inconvertibility, and also by a basic hostility toward foreign investment on the part of advanced industrial countries and less- developed countries. -----------------------------------------------------------
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This note was uploaded on 04/16/2008 for the course ECON 340 taught by Professor Deardorff during the Fall '07 term at University of Michigan.

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ECON 340 midterm 2 - : ECON 340 – Oct. 10 International...

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