Question

In: Economics

presentation of your own views in your own words about when - if ever - "protectionism"...

presentation of your own views in your own words about when - if ever - "protectionism" (including restrictions on the free movement of labor) is justified.

Solutions

Expert Solution

Soln. Movement of free labor is a fundamental economic concept in European Union, where labors are freely allowed to work inter countries without any restriction. The movement of citizens to work in other countries is universally accepted among European Nations without any discrimination between migrant and local citizens.

This concept holds good when the nations participating in this principle and allowing free movement of labors without any protectionism holds good till the number of nations are limited but when it grows high, concept does not help every nation in the same proportion. It is needed when any nation facs the below situation -

  • When the number of skilled labours required is less than the demand
  • When there is large population and people lack employment, free movement helps in getting them employment in other countries
  • When more efficient labor market is needed, then free movement of labor helps in achieving it
  • When for some countries, demographic challenges are common, free movement of labor helps in overcoming the situation and helping citizens work in other nation.

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