International Trade Short Response

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International Trade Short Response

Americans purchase of products from foreign nations made using cheap labor is very different from allowing the immigration of low-cost labor into the U.S. Immigration impacts the supply of labor in a country. This is because it increases the employees or workers in a given sector of the economy. Immigration also increases competition for the existing jobs in some sectors. Increasing the pool of labor in the US means that the competition for existing job opportunities is higher. It would also mean that there would be a decrease in the amount of skilled labor in the market. In the short run, wages would be reduced as employers would prefer low-cost labor over the existing expensive employee pool. Additionally, allowing low-cost labor into the country would reduce the levels of skilled labor in the economy.

Undocumented workers offer little risk to employers. These employers are under less scrutiny because they help in reducing the cost of production. Undocumented workers are in the country illegally, and therefore are more likely to be treated differently. Overall, employers help t sustain the economy through production in various sectors of the economy. The government must keep them happy to keep the economy running, as opposed to treating them worse than the undocumented immigrants.

Response to Peer 1:

I agree with your assertion that buying products made in foreign countries using cheap labor is different than allowing low-cost labor to immigrate to the United States. The host economy is changed in terms of culture and economic activities. These elements are important to the American population. I agree with your position that America’s racial past predisposes immigrant groups, leading to a need for foreigners coming in adding on to the array of culture in the nation. Therefore, purchase of foreign products is significantly different from bringing in cheap labor from foreign nations.

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