Bailouts for Foreign Workers

In: Business and Management

Submitted By michirika
Words 693
Pages 3
1- Why are foreign workers a vital source of competitive advantage for U.S. firms in certain industries? What are the limitations of U.S. workers in some of these fields?
Foreign workers have proved to be a vital source of labor for a large number of USA firms. This is because they possess high skills, which are not available among local American citizens. In some technical industries such as nursing and computer programming, there is a shortage of skilled personnel. Consequently, firms have opted to seek qualified employees from all over the world. For example, Microsoft Company has employed a very large number of foreign workers. In fact, it is the leading company with the highest number of foreign employees. USA workers are limited in the level of skills required by some fields. For example, the co-founder of Google Company came from Russia. He was granted H-1B visa, which means he acquired legal residence on the basis of his high level skills. This limitation of skills among USA workers has brought controversy. USA citizen workers are being laid off yet there is an increasing level of hiring foreign workers. Many politicians are against this trend and they are demanding for an action to curb this situation. One of the suggestions is to reduce H-1B visas in order to protect jobs for American citizens. 2- If it is true that the recent changes in the number of H-1B visas reflect an “antiemployer” attitude, what groups might consider these new policies as “pro someone else?” The most probable group of people likely to consider these new policies as “pro-someone else” is employers. They will view these policies as a form of forcing them to hire alternative people for high skilled positions. This means that they will have to search for employees among the USA citizens. Since the labor available lacks high skilled employees, they will have to employ workers…...

Similar Documents

Foreign Workers, Low Wages

...Is it fair to workers of developed countries when companies shift work to lower wage countries? The main reason companies shift work to lower wage countries is to reduce operating costs. Low labour, production, and energy costs in countries such as China, Japan, India, and Mexico is causing companies to shut their factories within the United States and open new factories in those foreign countries. This leads to the loss of jobs within the United States, a lower standard of quality, and resentment by those who are living within the United seeing more and more of their jobs going overseas. In 1994, NAFTA (North American Free Trade Agreement) was passed by then President Bill Clinton. His goal was to open the trade routes to all countries. Unfortunately, it led to many plants moving across the borders to Canada and Mexico. While outsourcing had begun in the 1980s, it grew by leaps and bounds in the latter part of the 1990s. Jobs went overseas to China, Japan, and India and the economy began to falter as American's lost their jobs and suddenly faced living on minimum wage as higher paying jobs went to these other countries. By looking at the average annual salaries in these other countries, it is easy to understand why companies find it appealing to outsource their business. Especially in China where the average yearly salary is significantly lower than their American and European counterparts. • China - $1,290 • India - $14,500 • Japan - $17,000......

Words: 1099 - Pages: 5

Understanding the Bailout

...THE BAILOUT Understanding the bailout The turmoil in the mortgage and financial markets, but also fears of recession, have pushed the government to act in order to prevent further worsening of the crisis. As the situation was getting worse month by month, government bailing out one financial firm after another (Bear Stearns in March, AIG in September), and letting fail some (Lehman Bros), a more global approach to address the problem was needed. The bailout proposal, initiated by the Secretary of the Treasury, Henry Paulson, a former executive of Goldman Sachs, was intended to create an entity whereas the government was going to buy those mortgage backed securities from the banks in order to provide liquidity to the banks and clear their balance sheets of these unmarketable assets. Although nobody understands exactly what the plan is and how it will help the economy, since it has changed since the legislation was passed by the U.S. Congress (angering investors in the meantime), there is a consensus that the government will have to step in to clear up the mess on “wall street” and on “Main Street”. In order to understand why there is a need for a bailout, I will retrace the roots of the crisis up to the point where the government decided to intervene. Also, I will address the issue of how the measures undertaken will impact on the banks, the credit markets, mortgage markets and the overall economy. Finally, I will provide an opinion as to why I think the bailout......

Words: 2135 - Pages: 9

Temporary Foreign Workers

...Temporary foreign worker program – Tim Hortons Introduced in 2002 and modified in 2007, this program allows employers to hire employees in occupations that usually require at most a high school diploma or a maximum of 2 years of job specific training. Visas maybe issued for 24 months. Employers are required to cover recruitment and return airfare costs, to ensure that suitable accommodation is available, to provide medical coverage until the employee is covered under a provincial plan and to sign an employee/employer contract. The work permit is issued with reference to a specific employer. Employees generally work in sectors such as cleaning, hospitality, manufacturing, oil and gas and construction. (Elgersma, 2007) Tim Hortons "is a company that a lot of Canadians identify with and it is very proudly a Canadian brand," says Howard Ramos, an associate professor of sociology at Dalhousie University in Halifax. "But it's also a company that is a pioneer in hiring temporary foreign workers and so for this reason I think it's important to highlight Tim Hortons as an exemplar of how the temporary foreign worker program has changed and expanded. (Davison, 2012) The temporary foreign worker program has man is a resort companies use to hiring as they will have exhausted all other avenues for finding employees locally. It is a great program mainly for foreign workers who come and work in Canada and if they like it here they can apply for permanent residency. Unlike......

Words: 2211 - Pages: 9

Us Automotive Bailout of 2008

...2008 Auto Bailout Cause and Effect Essay It is argued that America invented the automotive industry when Henry Ford introduced the Model T to work lines in 1908. Since then the American auto industry has been known as the most successful in the world, with Ford, Chrysler, and General Motors leading the way in innovative technology and design. These “Big Three”, as they are called, hold ties in every civilized continent, and sell millions of cars every year. Yet at the turn of the 21st century, the fortune of these companies began to wane. Oil prices skyrocketed, and the model lineups for American cars were unable to keep up with the demand for fuel efficient vehicles. Eventually in 2008, Chrysler and GM were bailed out by the government with a 80 billion dollar loan. America was largely divided on this issue, with valid arguments on both sides. Overall conservative parties were against the bailout and liberal parties for it. Political motivations aside, the 2008 automotive bailout was necessary for hundreds of thousands of Americans to keep their jobs, and to sustain one of the U.S.'s largest industries. Before the oil crisis began, American auto makers' primary concern were foreign imports. The Japanese had found a way to produce an affordable and reliable car while still turning a profit. On top of that, they had perfected the industrial technique of vehicle production, churning out more vehicles per day than any other country. As a result, U.S. Car makers were forced to......

Words: 1004 - Pages: 5

Aig Bailout

...Can We Expect A Regulated CDS Market? Derivatives Project Xilin Yang (Celine) Introduction The article introduces credit default swaps and explores the problems of the credit derivatives. By analyzing the AIG’s bailout, the article describes the regulation gap in the CDS market and states the regulation reform after the crisis. Part I is background, generally introduces the Wall Street crisis. How it happened? What consequence it has? Part II is mainly about AIG’s CDS business: how AIG got involved in the crisis and why the biggest world insurance company suddenly collapsed. Part III is about credit default swaps: definition, construction, and problems. Part IV is concerned on the regulation reform after AIG’s failure. Wall Street Crisis Speaking of the Wall Street crisis, people all know it proceed from subprime crisis. The relatively low interest rate prompts banks to issue large amount of housing loans. To transfer default risk embedded in those loans, investment banks package those loans and mortgages into student loans, car loans and credit card debt, which form the so-called collateralized debt obligation (CDOs). All these derivatives depend on the housing loans. In the era of low interest rates, house prices rise rapidly and promote the rapid development of the housing loans business. With steady stream of housing loans into financial derivatives products, different ranks of products are packaged to sale out. The good view of economy makes those potentially......

Words: 2738 - Pages: 11

Employment of Foreign Workers in Malaysia

...Employment Of Foreign Workers In Malaysia INDEX 1. Executive Summary 2. Introduction 3. Analysis 4. Challenges 5. Implications 6. Recommendations 7. Conclusion 8. References 1.0 Executive Summary The report investigates on the issue of employment of foreign workers in Malaysia. During the British colonial period in the early nineteenth century, Malaysia was a net receiver of foreign nationals who came to work in the plantations, mines, and construction sectors. Nowadays, rapid industrialization, urbanization, strong economic growth led to labour shortages in rural areas and plantation sectors due to rejection of locals to work in these industries. There are some changes and policy reforms since early 2000 regarding the employment of foreign workers, which includes: Amendments to the Employment Act and Equality in Treatment and Enforcement of Laws. There is also a proposel regarding Foreign Workers Act. The report analyses the advantages and disadvantages of employing foreign workers. Among the advantages are availability of low cost labour, willingness to work for long hours and availability of abundant foreign workforce. Nonetheless, there are also drawbacks to employing foreign workers including rapid expansion of population and increasing in level of unemployment of locals. The main issue is exploitation of foreign worker in Malaysia. Foreign workers are exploited by their employers in different ways, for instance, wage......

Words: 8266 - Pages: 34

The Automotive Bailout

...Running head: AUTOMOTIVE BAILOUT The Automotive Industry Bailout: Rewriting History ECON 625: Managerial Economics Abstract The automobile has long been a symbol of American growth and prosperity. Throughout the 20th Century owning and driving a car was an essential part of everyday life for vast majority of U.S. citizens, but few took much time to think about how they were manufactured. Early in the 21st Century, as the U.S. economy began to trend downward, it became apparent that two of the three primary automakers were in significant financial peril. With government aid already being allocated to some of the nation’s largest financial institutions, difficult decisions had to made as to how to approach the alarming crisis at the heart of an industry woven throughout the lives of so many United States citizens. Introduction Beginning in the early twentieth century, automobile makers began marketing and ultimately selling cars to middle-class Americans. It did not take long for a deep love affair for cars to develop across the nation, and ownership became woven into the fabric of the “American Dream”. The invention of the assembly line in the 1910s made automobiles relatively inexpensive, and by 1929 it is estimated that American car companies were producing 5.3 million cars per year (Miller-Wilson, n.d.). The automotive industry surely had its share of ups and downs during the 1900’s, with two World Wars, the Great Depression, an oil crisis in the 1970’s,...

Words: 3848 - Pages: 16

Immigration Bailout

...Immigration Bailout Melissa Leal ENG/215 April 06, 2015 Charlotte Babb Immigration Bailout Immigration reform, are you informed to what is going on? I’m going to explain how neither parties are taking into consideration how this will affect our nation, how the current immigration reform is putting a strain on our country, how all this is just a political struggle to gain the most influence, and options on how to solve the issues at hand. Let me start by explaining how this personally affects me. My husband is a border patrol agent. The information that I have gathered is strictly information that I have heard from either the media or things spoken indirectly. By no means did I get my information from my husband. The reason this affects many families of homeland security is, the constant back and forth between both parties trying to come to some agreement about a budget, this has been a long-standing issue. The government shutdown happened last year; this affected many federal employees. The difference being is that homeland security workers were still required to go out and do their job without pay. They had to put their lives on the line just as American soldiers did. What I think is the people do not realize that both parties fail to solve the issue and they just put a Band-Aid on it. Then the public is informed that there has been some type of resolution. In hindsight, I was one of those people. I failed to realize the truth until it actually directly affected me....

Words: 1672 - Pages: 7

Foreign Workers

...Foreign workers play an important role in Malaysian labour market and support in economic growth. However, the number arrival of foreign workers have been increasing nowadays and cause negative impacts to the country. Hence, foreign workers should not be granted for citizenship in this country. Firstly, job opportunities for Malaysians will become lesser. For instance, foreign worker allow to work without permit renewal concern when citizenship is granted. Beside that they entitled of welfare belong to Malaysian and make them become more competitive which result a job opportunities for Malaysian was occupied. Furthermore, Adam as cited in Teh (2015), bring in of foreign workers should be re-consider when the Malaysians have limited job options. Secondly, an increase of crime rate may result. For instance, as the supply of foreign worker keep increasing and job opportunity remain unchanged, it will cause an increase of unemployment rate. Thus, Mohamad as cited in Baker (2002), many foreign worker were jobless and involved in undesired activities, creating anxiety among Malaysian. Some people argue that foreign workers should be granted for citizenship because they are underpaid for job that Malaysians not preferred. However, they intend to improve economy in their hometown by bringing back money they earned in Malaysia. Thus, outflow of Malaysian Ringgit will happen. Consequently, money devaluation and inflation will occur. In conclusion, it is obvious that foreign......

Words: 253 - Pages: 2

The Bailout

...130 countries. Founder, Cornelius Vander Starr, ran the company until 1968 when he turned AIG over to Hank Greenberg. At that time, AIG was a privately held corporation (How Hank Did It). Greenberg had been running AIG for 37 years, longer than any other U.S. major corporation CEO. HeGreenberg transformed the company into the largest insurer in the world, made AIG the number 9 company on the Fortune 500 list, and at the end of 2005 the company’s $850 billion of assets made it the fourth largest company in the U.S. (How Hank Did It). The company consists of general insurance, life insurance & retirement services, and financial services and asset management. The general insurance unit engages in commercial property, casualty, workers’ compensation, and mortgage guarantee insurance. The financial services unit leases capital for equipment and aircraft, capital market transactions, consumer finance, and insurance premium finance. The asset management division engages in several investment related services and investment products to individuals, institutions, and pension funds (Sjostrom, 2009). In February 2005, American International Group, Inc. was subpoenaed by Eliot Spitzer, New York state’s attorney general, for documents relating to accounting fraud having to do with transactions known as finite insurance (How Hank Did It). AIG booked $500 million as income for the loss portfolio transfer and then added $500 million in reserves for the year 2000. The......

Words: 302 - Pages: 2

Bailout

...Bailout Money Awarded to Major Bank Executives Their Impacts on Utilitarianism and Deontology Price TUI University Abstract This paper explores two published articles that report on banks receiving billions of taxpayers’ dollars awarded from the government known as the Trouble Asset Relief Program (TARP), who in turn paid their top executives billions of dollars for bonuses. TARP is a program to assist in the stability and strengthen its financial sector by paying for bad mortgages and other trouble assets. In order to prevent economic collapse, the Bush administration changed the programs goals. (Gold, 2008) Using the TARP funds to support and pay off executive’s bonuses poses a moral dilemma within society, which I will later discuss in the paper. The purpose of this paper is to answer the question, Should top executives of the major banks that received bail-out money be allowed to receive large bonuses? I will present my personal view on the matter using the bases of my values, beliefs and research that I have done on the topic. In addition, I will explain how bailout money awarded to major bank use for executives bonuses impacts on utilitarianism and deontology. Bailout Money Awarded to Major Bank Executives and their Impacts on Utilitarianism and Deontology The United States began experiencing the recession during the early years of 2000. On September, 11, 2001 a tragedy in New York City occurred when the World Trade Center Towers were struck......

Words: 1918 - Pages: 8

Impact of Foreign Workers

...Employment of Foreign Workers: Local Employability and Trade Union Roles in Malaysia Ramesh Kumar Moona Haji Mohamed (PhD Candidate), School of Distance Education, 11800,Universiti Sains Malaysia Email: rameshk@utar.edu.my Charles Ramendran SPR Faculty of Business & Finance, UTAR Email: charlesr@utar.edu.my Peter Yacob Faculty of Business & Finance, UTAR Email: petery@utar.edu.my Abstract The issue of foreign workers has received increase media and national attention. However, to date there has been limited research on the nature and consequences of employment of foreign workers in Malaysia. Introduction of significant changes in recruitment phenomenon has ended in painful and traumatic atmosphere which barely acceptable by local workforce in Malaysia. This conceptual paper can be derived from the field of industrial relations which play a significant role in employment of foreign workers. The article reports on the preliminary findings on employment status of local workforce and trade union rights affected by employment of foreign workers. In addition, the research makes a number of recommendations, including the need for further development on reducing the employment of foreign workers and more refined targeting of vulnerable foreign workers linked with labor legislations. Keywords: Malaysia, foreign workers, trade union rights, local workers and employability Introduction For over the past decade, Malaysia has over dependence on the foreign......

Words: 4950 - Pages: 20

[Outline]Does the Increase Amount of Foreign Worker Induces Negative Impacts to Malaysia?

...UNIVERSITI TEKNOLOGI MALAYSIA, JOHOR BAHRU FACULTY OF COMPUTING SEMESTER 2, SESSION 2015/2016 ULAB 2122 – ADVANCED ACADEMIC ENGLISH SKILLS (ADVANCED ENGLISH FOR ACADEMIC) TERM PAPER OUTLINE:Does the Increase Amount of Foreign Worker Induces Negative Impacts to Malaysia? | GROUP MEMBERS: 1. WAN AHMAD ASYRAF BIN WAN HANIF (A14CS0148) 2. SYAKIR ZUFAYRI BIN ROSLAN (A14CS0139) SECTION: 27 LECTURER’S NAME: NORHANIM BTE ABDUL SAMAT OUTLINE FOR TERM PAPER Framework | Headings | Description | Sources | Introduction | Definition | The growing presence of foreign workers in Malaysia can be explainedby excess demand for labour combine with rapid economic growth, aswell as the cheaper cost of foreign workers. Most of them that from low-income countries like Bangladesh and Myanmar travel to other countries to find higher paid jobs. For example the current issue where approximately two millions foreign workers were given entry pass to this country for jobs. | Int. Journal of Economics and Management 5(1): 169 – 178 (2011) | | What is the issue? | The increaseof foreigners cause a bad implication towards aspects like social, security and peace for example, they fight with themselves in public, selling things without permit disturbing the peace. | Global Journal of HUMAN-SOCIAL SCIENCE:......

Words: 791 - Pages: 4

Gmc Bailout

...while he was working as the chief engineer for the main plant of the Edison Illuminating Company in Detroit. He made two unsuccessful attempts to start a company to manufacture automobiles before 1903. A month after the Ford Motor Company was established, the first Ford car was assembled at a plant on Mack Avenue in Detroit. In the early days of Ford, only a few cars were assembled per day, and they were built by hand by small groups of workers from parts made to order by other companies. With the introduction of the Model T in 1908, Ford succeeded in his mission to produce an affordable, efficient and reliable automobile for everyone: within a decade, nearly half the cars in America were Model Ts. The sensational demand for the “Tin Lizzie” led Ford to develop mass-production methods, including large production plants, the use of standardized, interchangeable parts and, in 1913, the world’s first moving assembly line for cars. In 1914, to further improve productivity, Ford introduced the $5 daily wage for an eight-hour day for his workers (up from $2.34 for nine hours), setting a standard for the industry. During the late 1910s and early 1920s, Ford began construction of a massive industrial complex along the banks of the River Rouge in Dearborn, Michigan. The plant combined all the components necessary for auto production, including a glass factory, steel mill and assembly line. When Ford Motor’s other stockholders resisted the idea of building the River Rouge plant due......

Words: 1285 - Pages: 6

Detroit Bailout

...Mackenzie Patterson 2008 U.S. Automaker Crisis: The Detroit Bailout At the end of 2008, two of the three largest domestic automakers in the U.S. received significant financial assistance from the federal government and President Bush’s administration. General Motors and Chrysler were burning through their cash reserves and heading quickly towards insolvency and potential bankruptcy, endangering not only themselves and their workers, but also the large domestic auto parts supplier industry as well. Insolvency had the potential to permanently alter and possibly destroy a large segment of the U.S. industrial economy. In an effort to avoid this, the federal government stepped in with highly controversial assistance in what is now generally referred to as the Detroit Bailout. The question then, as continues to be debated to today, is should the federal government have stepped in and provided help, or should they have left the free trade market alone? There are many opinions and multiple ideologies in the U.S., but which ideas are going to work? These were very difficult decisions that needed to be thoroughly analyzed and debated, however, the urgency of the situation, along with a general collapse in world financial markets led to events quickly overtaking prudence. In the United States, the country is roughly divided into too ideologies, free-market liberalism (conservatives), and social liberalism (liberals). This led to both free-market liberals and social liberals having......

Words: 2297 - Pages: 10

تحميل APK | kerelcun | Read more