Wednesday, March 30, 2016

Marshall Auerback — Donald Trump Understands the Nexus Between Trade and Immigration

Embedded labor in imported goods is vicarious immigration. Both reduce the real wage of the importing country.

Net imports are a benefit in real terns of trade, but only under full employment. Otherwise both result in either lower domestic wages (immigration) or lower domestic employment (net imports).


Random said...

"either lower domestic wages or lower domestic wages."

I choose lower domestic wages :b

Random said...

BIG story...

"In part two we will turn to the impoverished former Russian states to reveal the extent of misbehaviour by multinational companies including Halliburton. We will conclude the three-part investigation by showing how corrupt practices have extended deep into Asia and Africa."

TL;DR of article:

A company based in Monaco called Unaoil solicits business contracts from oil companies worldwide. They present themselves as a lobbying organization, but in fact most of what they seem to be doing is bribing government officials in many countries on behalf of the companies that hire Unaoil.

"The leaked files expose as corrupt two Iraqi oil ministers, a fixer linked to Syrian dictator Bashar al-Assad, senior officials from Libya’s Gaddafi regime, Iranian oil figures, powerful officials in the United Arab Emirates and a Kuwaiti operator known as “the big cheese”.

Western firms involved in Unaoil’s Middle East operation include some of the world’s wealthiest and most respected companies: Rolls-Royce and Petrofac from Britain; US companies FMC Technologies, Cameron and Weatherford; Italian giants Eni and Saipem; German companies MAN Turbo (now know as MAN Diesal & Turbo) and Siemens; Dutch firm SBM Offshore; and Indian giant Larsen & Toubro. They also show the offshore arm of Australian company Leighton Holdings was involved in serious, calculated corruption.

The leaked files reveal that some people in these firms believed they were hiring a genuine lobbyist, and others who knew or suspected they were funding bribery simply turned a blind eye."

Footsoldier said...

Sounds like the Quantum Of Solace Random.

Tom Hickey said...

Thanks. Fixed.