International factor movement



Introduction

International factor movement refers to mobility of laborers and finances across countries. It occurs in three ways which include immigration/emigration, transfer of capital through borrowing and lending from foreign countries and Foreign Direct Investments (FDIs). Such movements bring social as well as political issues in the home country therefore nations put a check and balance on such movements and allow and restrict accordingly.

Immigration/Emigration

Immigration is termed as movement into the country and emigration means moving out of the country. There are various reasons through which skilled labor decides to move outside the home country and work in a foreign ...