Reference no: EM132961861

Professor John Culbertson from the University of Wisconsin wrote the following article in the Harvard Business Review on September-October 1986. "If there were free migration and truly open borders, workers from the lower-wage countries would stream into the higher-wage countries. These new arrivals would compete for jobs, accept work for lower pay, and force the existing jobholders to accept either lower wages or unemployment. Precisely for this reason, no one accepts or supports the notion of free immigration. "We do, however, accept and support the notion of free trade, which has the same effect. Instead of exporting workers to the United States, lower-wage countries simply import our jobs and industries to their workers. As the higher-wage nation suffers cutbacks in production, failures of companies, and losses of jobs, the market dictates that workers accept lower wages and a reduced standard of living to match the lower-wage foreign competition"

Problem 1: Explain the economic reasoning in this argument and assess its validity.