Investment migration and foreign direct investment

International mobility of production factors 4. 1 forms of international labor mobility 4. 1. 1 forms of international labor mobility: immigrants and foreign workers, the former refers to those who settle in other countries and eventually become residents of that country; The latter refers to temporary work in other countries; Mobile nature: mostly permanent immigrants from the United States, Canada and Australia; Most people who go to Japan, Europe and the Middle East are foreign workers; Flow direction: from a country with a large population to a country with a small population; From low-wage developing countries to high-wage developed countries. Figure 4- 1 China's immigration to North America in recent years Source: Wen Hai, P. Lindert, Wang Xinkui: International Trade, P 163, Shanghai People's Publishing House, 2003. 4. 1.2 Analysis of output and welfare changes of international labor mobility. What impact will international labor mobility have on the interests of all parties and on the net welfare of countries and the world? We can illustrate this problem by the following figure. Output and welfare utility of international labor mobility 4. 1.3 External costs and benefits of emigration, financial impact of brain drain, financial impact of other costs and benefits (1) on emigration countries: the loss of various taxes and military service obligations may exceed the public service cost reduced by emigration-levying immigration tax; For immigrant receiving countries, the expenditure on public welfare enjoyed by immigrants may be less than or more than the tax they pay-for illegal immigrants (proposal 187). (2) Brain drain. The migration of senior talents to other countries will lead to "brain drain", which will reduce or even lose the income of education investment in their countries of origin. (3) Other external costs and benefits, knowledge and benefits, congestion costs: excessive noise, conflicts and criminal social frictions: racial discrimination and ethnic conflicts. 4.2 the way of international capital flow, the impact of international capital flow. 4.2. 1 Mode of international capital flow (1) International loans, loans from foreign governments, loans from international financial organizations, international syndicated loans, export credit, international securities investment, international stock investment and international bond investment.