Labour and capital mobility (NP)

Episode number 5 of Series “The Global Economy”.
The increasing globalisation of the international economy has resulted in labour shifting across the globe in search of employment opportunities. This episode of the Open Learning Economics course examines national economies reliant emigration and immigration cycles. The first half of the program examines the relationship between the Netherlands and Turkey. In the late 1960s Holland began to accept a large number of Turkish immigrants who were leaving their home country due to the decimation of the traditional agricultural economy. For Holland, the Turkish people provided a pool of cheap labour, while for Turkey, its economy became dependant on the wages the immigrants sent back to their home country. The second part showcases Mexico and United States where in order to alleviate the social problems caused by extensive Mexican immigrant labour in the US, the two countries have entered into an economic union which allows American companies to move their capital to Mexico. The panel discussion looks at the ramifications of this agreement (part of the North American Free Trade Agreement - NAFTA) on unemployment and labour relations in both the “host” and “home” nations.