Impact of Immigration on Economic Development and Policy Recommendations

Chapter 1: Ten Principles of Economics

Task:

1.Select approximately four new ideas, economic models, and concepts from each chapter. Fully integrate the concepts into the discussion.
2.If it is needed, identify relevant sources of information. Cite the sources you used. Pay attention to the credibility of the source.
3.Apply positive economic analysis, it means use economic theory you learned in class.
4.Your response to each section (chapter) should be at least one page long.
5.Include a short introduction and a conclusion in each topic
6.This project is not a literature review report.

Project Details:
Choose a  local immigrant community you will study this semester (for instance, Venezuelan, Korean, etc.). Introduce the community. Learn the history of immigration to the local area. Present socio-demographic characteristics of the community.
Chapter 1, Ten Principles of Economics (Pay attention to one important section:  How People Make Decisions, Marginal Analysis, Efficient Resource Allocation.). 

Chapter 2: Thinking Like an Economist.( Key concepts:  Production Possibilities Frontier,  Circular Flow Diagram)

Consider the questions listed below.
1.How do people make a decision to relocate? Describe their incentives, or MB, MC (marginal benefits and marginal costs). How do we know if the decision is efficient?
2.Discuss  MB and MC to society (local community).
Mention the importance of productive resources and their impact on production possibilities. How does recent immigration policy affect productive resources? 
Explain the effect of immigration on the local economy using the circular-flow diagram. 
3.Briefly discuss why free markets are the best system to organize society. The U.S. civilian workforce includes 8 million unauthorized immigrants (Source: PEW Research Center, 2017). Undocumented immigrants have no freedoms or limited freedom to use their resources (to relocate, invest, work, start a business). How does the freedom to locate your resources (economic freedom) improve economic efficiency? How will the legalization of undocumented immigrants affect economic efficiency? (strictly use the concepts you learned in this chapter) 

    Sources I recommend:

You may include your observations.
I recommend a chapter from this book, “What Would Libertarians do about Illegal Immigration”.
Include a brief conclusion: What did you learn about immigration and its impact on economic development? How do immigrants reshape local communities?  Recommend policies to improve the outcome (economic efficiency).
Your response should include approximately 500 words.

We will continue working on the cost-benefit analysis. The next few chapters will help us explore the details, how immigration contributes to economic development.

Chapter 4, The Market Forces of Demand and Supply. 

Introduce the topic.

Discuss how immigration affects demand and supply in product and service markets. (Think what determinants of demand and supply are affected).  I encourage you to use the observations and data you found about the community you study.

Use the labor demand and supply model to illustrate the effects of the inflow of foreign workers and entrepreneurs into labor markets. Remember that markets are interconnected. You may use this Source:
The Economic Effect of Immigration. I encourage you to use the observations and data you found about the community you study.

Present your findings on immigration policy and labor shortages:
What U.S. immigration policy has to do with wages and labor shortages
A labor shortage is a real problem, we cannot just raise wages to reduce the shortage, as we may do in the product markets. If we increase wages, then many small businesses will have to leave the market, and we will end up with large monopolies that dominate product and labor markets. 

How do recent immigration policies affect the markets?
Do not simply summarize what you learned from the reports, but use your own words and apply economic analysis to discuss the outcomes; use your observations and data you found about the community you study.

Insert the model of demand and supply when appropriate.
Include a brief conclusion: State what you learned about the community and its contribution to economic development, and, if applicable, recommend policies to improve the outcome (economic efficiency).

Your response should include approximately 500 words.

Chapter 3, Interdependence and the Gains from Trade.

Introduce the topic.

Gains from Trade. 
1.Outline the benefits of free trade and free movement of labor (workers are entitled to look for work in another country, without requiring any visa).  You may take a look at this publication,Free movement of labour - advantages, but use your own words and economic analysis to discuss the outcomes. Use the model of demand and supply and a production possibilities frontier to illustrate your answer.   I encourage you to use your observations and data you found about the community you study.

2.What would happen in the product and labor markets if we legalize unauthorized immigrants? Use the model of demand and supply and a production possibilities frontier to illustrate your answer ( you may refer to your Chapters 1, 2 and 4 discussions).