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A few questions. Is "free" trade possible without "free" labor mobility? Currently, 11 of the top 15 tech companies in India are American. For most of the mult
by virtuabhi 10y ago
A few questions.
Is "free" trade possible without "free" labor mobility? Currently, 11 of the top 15 tech companies in India are American. For most of the multinational US companies, India (not EU, not China) is the biggest consumer (after US) or growth region. So how many Indians should be employed by the American companies (both tech and non-tech) active in Indian market? Should Indians be working on localization only or on the core technology? It seems to me, at current H-1B levels, the balance is heavily skewed towards trade rather than labor mobility.
Also how does H-1B decrease the salaries of Americans? H-1B makes American companies more competitive. And they are able to sell products in more markets. A cut in free labor mobility will lead to cut in free trade from the other side. Imagine you are a startup founder. You go to a VC and tell him/her that you plan to hire only natives and sell only in the local market. Do you think you will get any funds from the VC? If yes, then will you get more funds (and more revenue and salary) if your startup hires at the best talent/cost and is able to sell all around the world? The point being that there is a reason that as software engineer you earn 150k in US, not 40-70k as earned by software engineers in other developed countries.
And then there are studies showing that each H-1B creates 2-5 jobs in the US (some studies quote a much higher number...)
Isn't this an example of win-win?