Closed Borders Summary

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Margret Peters raises the question of how trade and immigration impact each other in Open Trade, Closed Borders. She explains that each country is different, and therefore their policymakers go through a different process on the decision of the borders being open or closed during times of great trade. Using examples from Alexander Hamilton, she uses his example to show that in certain situations, open trade can impact the agricultural industry because they rely on said low-skill laborers that immigrate to their country. She also asks why nations, such as wealthy states, do not accept more low-skill immigrants, since these nations already have such a large impact on the developing world income. She states that the lowest of the low, income …show more content…
In order for certain firms and or nations to join world-trade or other markets that have high entry barriers, they must be large and relatively stable as is to be able to overcome said barriers. Due to this, nations looked to other methods of trade in the hopes that it can still provide revenue for the government. Leaving their country open to immigration created an influx of communication with other nations. This new-found communication can lead to boosts in other industries, those which might employ the low-skill laborers. A specific of this could be the shipping industry, increased communication may mean that relations between certain nations improve, adding to the strength of global shipment. An effect of this may mean the creation of new shipping routes and possible relations with those nations that are trade …show more content…
These groups are broken down within four categories, native labor, taxpayers, nativists, and the actual immigrants. A major player in the native labor category are the labor unions, which can play a big role in influencing policymakers to close immigration. Immigration increases competition for the low-skilled labor, these laborers will work for cheaper than the unions and often create an excess in supply for certain trades and jobs. Other examples of groups are taxpayers and what programs they let policymakers approve to those who need, welfare or other government funded aid programs. The more pressure that these unions press upon the policymakers, the higher the barriers become for immigration, whether it be quotas or requirements such as labor skills or degrees for example. Citizens or taxpayers for example approve of closed immigration because these immigrants pay little tax, or none at all. Along with that, prices are often drove up and jobs are taken by the low-skilled immigrants that could have been taken by citizens. Finally, these immigrants take advantage of the government programs that are paid with by taxes, which commonly are not paid entirely or at all by
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