Migrant Workers

 

Trade blocs like the European Union (EU) are developing during this time of globalization. More people are able to move across borders searching for work and a better standard of living. This has benefits and drawbacks for all involved. Ten new countries were admitted into the EU in May 2004. This will allow people from Eastern Europe like Poland or Hungary to move to more advanced Western European countries like Ireland in search of a job. For Poland, this could help reduce its unemployment rate as the jobless leave. It might also be "a brain drain" where its smartest workers leave their own country. For the Hungarians who choose to migrate, it could let them rake in the dough compared to the wages they would make at home, but they would be away from their culture. Irish companies could hire some of the best people from abroad, but this could take jobs away from their own citizens. In other nations, the migrant workers allow the small and medium-sized enterprises (SMEs) in a country to compete on a more equal playing field with the large conglomerates. Major corporations like Korea's Samsung remain competitive by moving many facilities to countries with less expensive costs, such as Vietnam and China. This could give them a leg up on the Korean SMEs. This is because the smaller operations can not afford to move many facilities abroad in order to capitalize on lower costs. Thus, prices might not be competitive with the large corporations and eventually they could go belly up. Instead of moving their facilities abroad, the Korean SMEs can just sign a contract to move foreign workers to Korea. These foreign workers could usually be paid less than their Korean colleagues. The SMEs would be able to reduce their overhead and keep their prices competitive with the large corporations. trade blocs = large free trade zones that include several countries (eg. NAFTA) standard of living = quality of life unemployment rate = percentage of people who do not have a job conglomerates = corporations with many companies in different business areas can not afford = can not endure the cost, do not have enough money to pay for something capitalize on = gain by making something into an advantage a brain drain = a time when most intelligent workers leave for another country, usually for better pay or living conditions rake in the dough = make lots of money equal playing field = situation where all companies have equal ability to compete a leg up = an advantage go belly up = go bankrupt, run out of money