Abstract

In this study we try to explore the concept of “Emigration” in a holistic context. The main focus of the research is on “Emigration” and its relation with “the benefit they give to the county”. The research also analyzes many aspects of “Immigration” and tries to gauge its effect on “the economic wellbeing”. Finally the research describes various factors which are responsible for “Emigration” and tries to describe the overall effect of “Emigration” on “the functioning of the country”.

Emigration

Immigration can be defined as introducing people to a new habitat, population and country temporarily or permanently. There are many factors due to which people emigrate; these can be social, economic or political factors. Some people move permanently in order to avail better opportunities. These emigrants when return to their country cultural diversification takes place.

Impact of emigrants on business activity

This growth in international migration is of considerable significance in the contemporary global economy and is likely to impact on all aspects of international business activity. Research on international migration is particularly important because of the uneven processes of globalization. Levels of international integration vary considerably between different markets. In general, global integration of capital markets has proceeded faster and further than other markets while product markets display intermediate levels of global integration, for example, has shown that even for the most global businesses, the majority of sales are regional (Chung, 2004, 705-28). Trade in intermediate products and services, particularly as a result of the rapid increase in offshore outsourcing, tends to be more global, however. The lowest level of global integration is apparent within labor markets which, for a number of reasons, effectively remain national in scope. The separation of labor markets occurs because of remaining restrictions on the movement of people, the considerable psychic and cultural costs of relocation, as well as marked differences in legal and institutional landscapes.

While such considerations mean that labor is far less internationally mobile than other factors of production, the links between labor markets are increasing through the entry of new economies into world markets, continuing international migration and the international outsourcing of tasks and processes. Increasingly, information technology makes it possible to move work from one location to another to take advantage of differences in the cost, quality and skill sets of workers (Commander, 2004, 235-72).

These co-movements of both tasks and workers create opportunities for the arbitrage and exploitation of differences between national labor markets. While arbitrage has traditionally been used in the financial markets to describe the almost simultaneous purchase and sale of financial instruments across separate markets to exploit price discrepancies, the principle can also be applied to labor markets. This is possible because national labor markets typically display the twin characteristics of separation and price discrepancy. Several variants of cross labor market arbitrage are evident. The outsourcing of work to developing economies is often characterized as cost or labor arbitrage and, in international business terminology, could be equated with “efficiency seeking” investment. The growth of knowledge process off shoring (KPO) could be envisioned ...