POLS 2401 Edition 1Outline of Previous LectureFree Trade and the WTOI. Theory of free tradeA. Adam smith & David RicardoII. Basic ConceptsA. Division of LaborB. Comparative AdvantageIII. GATT, WTO and the Postwar Global Trade RegimeIV. World Trade Organization (WTO)V. WTO Dispute Settlement ProcessVI. Clash of Sovereignty and World Trade RulesVII. The Doha Development AgendaA. Developmental ProgramB. Trade Round Outline of Current LectureImmigration and Its Economic ImpactI. Global Migration A. Nothing newII. Examples of Global Migration A. Economically driven migration: Filipinos B. Politically driven migration: Burma and ThailandIII. Waves of Immigration in the USIV. Other patterns of Migration in USV. Opposition of ImmigrationVI. The Rosier View of Immigration•Global Migration•Not new, has been around for centuries, is happening everywhere•232 million migrants living and/or working outside of the country they were born in (UN, 2013)•Since 1960, migrants have been 2-3% of the world population (no great change in %, but real # has increased as total population increased)•Reasons for migration: primarily economic, sometimes also political•Examples of Global Migration•Economically driven migration: Filipinos–workers all over the world (e.g. Hong Kong, Saudi Arabia, United Arab Emirates, Taiwan, Japan and the US) doing all kinds of work (nurses, construction workers, maids, etc.)–send back billions of dollars to their home country ($26 billion in 2013), with remittances in recent years accounting for 10% of GDP for the Philippines•Politically driven migration: Burma and Thailand–Close to an estimated 1-2 million people from Burma have fled to neighboring Thailand to escape political persecution. Only a fraction of them are legal immigrants.•Waves of Immigration in the US•The early white colonial settlers in the US were immigrants from England France, Germanycoming in search of economic opportunity and political freedom•Colonial settlers brought slaves from Africa, involuntary immigrants•From the 1800s a new wave of Europeans from Germany, Ireland, Italy, Russia, Poland and southeastern Europe•New wave of non-European immigrants starts in the 1960-70s: from Latin America, Africa, Asia•Other patterns of migration in US•Until 1960s, the overwhelming majority of immigrants were white and from Europe (70%). Now nearly all are non-whites from Africa (4%), Asia (34%) and Latin America (48%)•Historically, the US history of immigration has been one of economic growth, with dips in immigration during times of recession or economic crisis•Increasing numbers of illegal immigrants•Opposition to Immigration•Sometimes comes from prejudice based on race, ethnicity, or some other characteristic (religion)•Fears of diluting host country’s language and culture•Frequent claim that crime rates are higher among immigrant populations•Lower wages for immigrants undercuts wages of native-born workers–Cheaper immigrant labor displaces US-born workers–Real wages of low-skilled workers have remained stagnant for 2 decades•Immigrants are an economic burden (welfare, medical care, education, etc.) and cost more than they contribute to the economy•The Rosier View of Immigration•Immigration is a net gain for the economy – immigrants provide needed workers (preventing labor shortages), are entrepreneurs that start up new businesses and also create other jobs/markets in local economies through their consumer purchases and investments•Immigrants do jobs that native-born often don’t want to do (3 D’s: Dull, Dirty, Dangerous)–As the native-born populations get more educated over time, people expect to do higher-skill and higher-wage jobs. Immigrants fill in the gaps of less skilled workers.•The economy is dependent on immigrants in many areas: construction, agriculture, meatpacking, cleaning and food services, healthcare/nursing•Cultural diversity is not a bad thing: new foods, greater awareness of the