Foreing employees in a economic crisis

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FOREING EMPLOYEES IN A ECONOMIC CRISIS

In many countries, foreign labor is an important part of the economy. Using migrant labor can contribute to the development of acountry, but it can also cause economic problems. What are some of the advantages and disadvantages of expatriate labor for a country’s economy?

There are many obviousadvantages to using foreign labor. First of all, they are usually cheap for the employers. Foreign employees are happy to work for salaries which are high in comparison to their homecountries but low in the host country. They are also ready to work in remote places or at times when local workers would not. Currently, the companies and employers who aresuffering the problems of the global economic situation, take advantage of hiring foreigners. All these advantages mean that the economy is boosted by cheap labor and lowproduction costs.

However, there are hidden costs to the economy of the country. One major drawback is that the workers are sending a lot of money to their home, instead of spendingit. This results in a loss of foreign exchange for the country. Another point is that they may take jobs from locals. More importantly, they reduce the salaries for some jobs.For example, a businessmen now prefer to pay less in wages to foreign workers that to hire a highly qualified local employee. In my opinion this is the biggest disadvantage.In conclusion it’s important to have some control over the use of foreign workers, and to make sure that using them does not disrupt the labor market for local workers. Oneway is to pay them higher salaries and give them full protection. Countries should seek to employ their own citizens first before turning outside and depending on foreign labor.
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