Global Economic Environment


This assumption that immigrants into the US reduce wages and floodthe labor market is true. The immigrants who enter the United Statesare from low income countries and therefore they demand and acceptlow salaries as compared to the locals who are not desperate forjobs. It is also evident that the low income countries pay lowersalaries than the United States and therefore the employees fromthese countries are comfortable with low salaries (Beck, 2014). Thesepushes the American citizens who are seeking for jobs to accept theselow salaries. Additionally, it is clear that the immigrants flood thejob market and therefore the demand for employees goes extremely low.This implies that when supply is high and demand is low, the pricewhich in this case is the salary will reduce drastically. It is clearthat some of the immigrants are equipped with skills and knowledge towork in the various America job sectors and therefore they areattractive to employers just as the Americans are attractive (Beck,2014).

It is evident from research that the immigrants into American comefrom all parts of the world including Africa, India and Asia. Some ofthe immigrants are people who leave their professions to find greenerpastures in the US. In fact, almost all the immigrants into the USare people who are seeking jobs and better lives. It is thereforeabundantly clear that the immigrants flood the job market and pushsalaries down (Beck, 2014). The American employment system does notdiscriminate against any people on the basis of color of the skin,race or country of origin. Therefore, the immigrants who acquireAmerican citizenship are qualified and fir to work in any sector inthe American job market.

Zero-sum game is an aspect that occurs in decision theory where if aparticipant gains, there must be another participant who will lose anequal amount. In other words, any gain is accompanied by a loss ofequal measure (Straffin, 2012). This is a situation where there is amathematical representation which shows that each participant’sgain of utility is accompanied by another participant’s loss ofutility of equal value. A great example is where a person starts abusiness. At the beginning the business does not result in a zero sumgame since the owner can create value (Sorin, 2013). However, whenthe business owner starts to share the value with the customers andvendors, the balance goes to zero.

Non-zero sum is an aspect in decision theory where the gains ofdecision maker does not necessarily result in the loss of anotherdecision maker’s utility. In this situation, when the gains of onedecision maker are added to the losses of another decision maker, theresult is not zero (Straffin, 2012). This is a direct oppositesituation from the zero sum game where such a result would be zero. Aperfect example is the prisoner’s dilemma, where the gain of one ofthe players does not have to result in the loss of another player(Straffin, 2012). This situation occurs where the players might notbe in a competitive game. In this game, players act for theirself-interest and try to acquire the best outcome possible. Theplayers are not interested in the pursuits of each other andtherefore the gains of one person do not have to end up in the lossof another.


Beck, R. H. (2014).&nbspThe case against immigration: The moral,economic, social, and environmental reasons forreducing U.S. immigration back to traditional levels. New York:Norton.

Straffin, P. D. (2012).&nbspGame theory and strategy.Washington, DC: Mathematical Association of America.

Sorin, S. (2013).&nbspA first course on zero sum repeated games.Paris: Springer.