Why do you think this situation prevails

QUESTION

You are a research fellow for a Washington, DC-based research institute investigating the ethics of restrictions on the international movement of labor. In the practice of international trade, both physical resources and capital cross international borders rather freely, whereas labor is heavily restricted. In fact, it can be extremely difficult for individuals to obtain a permit that allows them to be gainfully employed within many countries. Thus, whereas companies are free to set up production in markets where labor is cheap, labor cannot move to markets where wages are higher. Some argue this locks poor people to their poor geographies and gives them little hope for advancement.a) Why do you think this situation prevails?b) Is it ethical that, of all the components of production, labor is the one most subject to restrictions on its international mobility? Explain (150 words total and at least one reference)

ANSWER:

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