Globalization and immigration
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Globalization and Immigration. “THE WORLD IS FLAT” THOMAS FREIDMAN. “The greatest improvement in the productive powers of labor…seem to have been the effects of the division of labor….(and) the division of labor is limited by the extent of the market.” Adam Smith, The Wealth of Nations

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Globalization and Immigration

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Globalization and immigration

Globalization and Immigration


The world is flat thomas freidman

“THE WORLD IS FLAT” THOMAS FREIDMAN

  • “The greatest improvement in the productive powers of labor…seem to have been the effects of the division of labor….(and) the division of labor is limited by the extent of the market.” Adam Smith, The Wealth of Nations

  • Improvements in telecommunications and transportation have vastly expanded the markets for goods and for labor

  • Cheap foreign goods and services are good, but, isn’t American labor being priced out of the market?


Offshoring is growing

OFFSHORING IS GROWING


Relative wage of nonproduction production workers u s manufacturing

Relative wage of Nonproduction/Production Workers, U.S. Manufacturing


Why have the wages of low skilled americans fallen

Why have the wages of low-skilled Americans fallen?

  • If its only increased competition from foreign workers that is driving the wages of Americans down then firms should be taking advantage of these lower wages for unskilled labor by increasing the ratio of unskilled to skilled labor in their operations. But the opposite has occurred. The ratio of non-production to production workers has trended upwards in American plants.

  • This is a world-wide phenomenon.


A world wide phenomenon

A World-Wide Phenomenon


Mexico s relative wage history looks like the u s

MEXICO’S RELATIVE WAGE HISTORY LOOKS LIKE The U.S.


Demographic overview

Demographic Overview


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