How Has Foreign Labor Changed The United States ' Economy

1260 Words Jun 1st, 2016 6 Pages
Final Exam - How has Foreign Labor Changed the United States’ Economy? All of us, working or nonworking, get to enjoy Labor Day, a national holiday in September that gives the American people the day off. However, just how does this effect the nation when companies are using foreign labor? There are two prominent types of foreign labor that are used today; this includes the usage of factories over seas, or the bringing in of migrant workers. Migrant workers have been used before the Civil War in the 1860’s, including slaves brought from Africa to work on plantations. Today, in the United States, migrant workers are those who have fled and work for a company, legally or illegally. The most popular and stereotypical example are Mexicans. The increased immigration over the past two decades had “substantially worsened the labor market opportunities faced by many native workers,” reducing the wage of the average U.S.-born worker by 3 percent and the pay of high school dropouts by 9 percent. In this essay I will be focusing mainly on factories abroad. Countries in the Asian-Pacific region, mainly China, have been a hotbed for big companies to build factories and hire workers for next to nothing. The current Chinese Yuan is at 15 cents for one US dollar, meaning it costs a lot less to build a factory, compared to the United States. The average employee makes anywhere from 3 cents an hour to 2 dollars an hour, which is not even close to the lowest minimum wage in the United…
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