The this strategy ensuring continuous innovation. The

The racial and ethnic composition of
modern societies have dramatically changed in the last few decades as a
consequence of mass migration fuelled by globalism (Bove, Elia, 2017a). Foreign
workers migrate to maximize their personal incomes given their skill levels and
highly-skilled migrant workers are highly desired by multinational corporations
operating in the host country. One such MNC is Apple Inc., which tends to hire
a large number of highly skilled migrant workers in research and development.
The reasons for this are manifold. Highly-skilled immigration is an important
factor in driving innovation at Apple with the company believing the rich pool
of variety of ideas and abilities in their highly diverse heterogeneous teams
positively affects the company’s ability to innovate. Apple equates their
products with high quality, invention and innovation spending untold billions
on R (Leswing, 2017). They don’t try to have diverse and numerous
products in all product categories, but follow a ‘great product strategy’
favouring quality over quantity by ensuring their sole product is the leader in
its category, giving a great user experience. Thus, Apple actively sources the
highly skilled migrant engineers that fuel this strategy ensuring continuous
innovation. The mobility of migrant workers means that this mobile labour pool
is willing to settle in the areas of the U.S. where Apple currently innovates
negating the need to relocate highly skilled native employees or for costly
expansion of premises. However, President Trump’s anti-globalist views and his
desire to curb immigration into the U.S. may be a reason why Apple has decided
to build two R centres in China.

However, highly skilled immigration
represents a small inelastic percentage of all immigration. There is far less
enthusiasm in host countries for lowly skilled or unskilled migrants. These
directly compete with natives for jobs driving down wages and giving MNCs, like
Apple, all the power in the labour market. 
In the U.S. in 2017 Apple employed 123,000 workers directly, and claimed
to have created employment for 10 times that number indirectly creating whole
new mini-industries in areas other than highly skilled R (Arnold, 2012).
Driving down the wages of production, sales and logistics workers doubtlessly
creates increased profitability, with the added ability for growth.

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However, many natives have begun to
despise globalist MNC policies and their desire for mass migration citing the
added tension and distrust in their previously homogenous societies. Large
numbers of unemployable migrant workers relying on welfare in the host country
has led to increased taxation and bloated government. However, migrant workers
able to find employment in developed economies tend to send money home to
relatives in their country of origin in the form of remittances. Remittance
money has been shown to reduce the depth and severity of poverty, as well as
indirectly stimulate economic activity in poorer nations (Stojanov,
Strielkowski, 2013). Such wealth creation has potentially expanded Apple’s
consumer base bringing their products within the reach of more people.

Apple has actively championed mass
migration into the United States lobbying for increasingly liberal immigration
laws (Lee, 2017). Different subgroups within the native population have
benefitted disproportionately from such globalist policies. However, despite
Apple’s globalist policies the brand still generates strong positive emotional
reactions from those who use its products, with its leaders, past and present,
being highly admired. Anti-globalist vitriol is reserved for bankers rather
than tech-innovators.    

 

Mass Migration – a Global Phenomenon      

 

Arguments rage about what
immigration really means for jobs, economies and cultures in developed and
developing countries? Humans have always attempted to migrate to somewhere safer,
or simply better. This is a profound characteristic of our species. Between
1881 and 1890 approximately 250,000 Britons annually emigrated from the United
Kingdom searching for opportunities in the independent United States or
Britain’s colonies and territories (Snow, 1931). The drivers in the 19th
century were a search for religious freedoms or greater economic opportunity.
Conversely, in 2016 588,000 people reverse migrated to the United Kingdom from
the European Union and beyond. Reasons for coming to the United Kingdom vary,
but most come either to study, to commence employment in established companies,
to search for work or to reunite with family members already living in the U.K.
(bbc.com, 2017). In 2015 more than a million people simply walked into Europe
seeking asylum (Connor, 2016) as the German chancellor, Angela Merkel, suddenly
introduced a globalist open-borders immigration policy forcing other E.U.
nations to comply.

Migration seems to be a two-edged
sword. Research has shown that cultural heterogeneity in the workplace in developed
nations has a positive effect on economic growth (Bove, Elia, 2017) and
promotes complimentary labour reforms (Samimi, Jenatabadi, 2014), while conversely
in 2016 the U.S. Council on Foreign Relations cited their concern for conflict
risk through political instability in E.U. countries due to the influx of
refugees and migrants (cfr.org, 2016). However, it is not just politicians in
developed countries that are finding immigration hard to sell to an increasingly
hostile native population. Between 2006 and 2010 South Africa took in more
refugees than any country in the world. Despite studies showing a net positive
contributions to the country’s economy, protests and violence against
immigrants are on the rise with high crime rates and unemployment driving much
of the resentment (insights.som.yale.edu, 2017). Human migration brings
daunting economic and social change, a lot of it resented by host populations
(Portes, 2010). However, human migration is ubiquitous in its scope and is
something that is unavoidable in today’s global economy.

The economic effects of migration
for both sending and receiving countries may also vary depending on who is
moving, specifically with respect to migrant workers’ talents. Skilled immigration
can help economies become more dynamic and efficient and has been observed to
boost productivity through innovation and specialization. Data from the United
States shows that a one percent increase in the share of migrant university
graduates increases the number of patent applications and grants issued per
capita (Hunt, Gauthier-Loiselle 2010). Legal immigrants represent about 14 or
15 percent of the U.S. workforce, but studies of patent data show that
primarily Indian and Chinese ethnic names are responsible for roughly 25
percent of domestic patents. Immigrants account for about a quarter of the U.S.
workforce engaged in science, technology, engineering, and mathematics (STEM)
fields and this share is growing rapidly (Ratha, Mohapatra, Scheja, 2011).  The race for talent has led many companies,
especially MNCs, to actively compete in the recruitment of highly educated
migrants. Highly skilled immigrants naturally build globalization into their
value proposition. Overseas MBA students at Harvard organically envision U.S. based
companies having their R in India, manufacturing in China and key
executives based in London. Research has shown that immigrants maintain
business and cultural links to their home countries and embrace globalization,
leading to a greater amount of foreign trade and vice versa. As labour markets
become increasingly global, educational policies in developing countries will
be revised to invest in skills needed within the country as well as in the
global labour markets. This will lead to growth amongst education providers and
innovation in education.

Although highly skilled immigrants
in employment contribute to their host country due to their role as taxpayers
contributing to the system, less employable unskilled and semi-skilled cost
their host society through their continued access to extensive social safety
nets and welfare services. Of the largely unskilled migrants who claimed asylum
in Germany in 2015, very few found jobs leaving the majority depending on state
welfare (Kroet, 2016).

However, unskilled and semi-skilled
immigration can be a gain for the destination country as it increases the
supply of labour, which in turn increases employment, production and GDP
(Ortega, Peri 2009). Additionally, immigrants free up the local workforce to
move to higher productivity occupations, stimulating local economies. Jobs can
also be created in host countries to support large-scale migration. The migrant
influx of 2015 led to 50,000 to 60,000 jobs being created for Germans in the fields
of education and social work (thelocal.de, 2016). However, incoming migrants
need to be integrated into the labour force, which intensifies the competition
for existing jobs especially in times of economic downturn. Increased job
competition allegedly brings down the wages for locals, and the increased
financial burden for caring for a growing population of underemployed
immigrants and their dependents must be shouldered by the host population.

There is no strong evidence to show
that immigrants take native’s jobs (Papademetriou, Sumption, Somerville, 2009).
However, in the U.S. the middle classes have been hit by the lack of good
jobs.  There are now approximately 10
percent fewer middle-class jobs than there were a decade ago and as competition
for jobs increases, wages are being depressed because employers know that they
have all the power. Working class American families are being squeezed like
never before. Only the top 5 percent of U.S. households have earned enough
additional income to match the rise in housing costs since 1975.  A nice home is becoming out of reach for a
lot of Americans. All aspects of globalization can be blamed for this, not just
immigration. However, there is a definite correlation between an influx of
migrant workers, and downward pressure on salaries. In addition to a loss of
jobs and the heavy burden on public services, immigration has been blamed for
increased social tensions and increased criminality (United Nations Development
Programme, 2009).

Migration helps to alleviate poverty
(Adams, Page, 2005).
Immigrant workers send money home in the form of remittances. There is a
growing body of evidence suggesting that the income from remittances is
disproportionally spent on education and health rather than everyday consumption
(World Bank, 2006). The children of migrants may be more likely to finish their
education, as income from remittances provides additional financial resources.
The better prospects associated with migration influence social norms and
incentivize gaining more education (United Nations Development Programme,
2009). According to official estimates, in 2009 migrants from developing
countries sent over U.S.$315 billion in earnt incomes back to their origin
countries, three times the size of official development assistance (Ratha et
al. 2010). Evidence suggests that remittances reduce the depth and severity of
poverty, as well as indirectly stimulate economic activity (Ajayi, Ijaiya,
Ijaiya, Bello, Ijaiya, Adeyemi, 2009) having a stabilizing effect at both the
macroeconomic level and the household level. This creates wealthier markets and
opportunities for companies in developing nations.

 

The Effects of Mass Migration into the United States on
Apple Inc.

 

The world has become a global
village where everything is interlinked due to globalization, and multinational
corporations have been instrumental in this phenomenon. The contributions of
MNCs have been pivotal in the integration of national economies into the global
system through encouraging trade, foreign direct investment, capital flows,
migration and the spread of technology (Bhagwati, 2004). Apple Inc. is an
American based MNC specialising in the design, development and manufacturing of
electronic equipment like computers, software and smartphones, with a range of
software offered. Multinational corporations, such as Apple, rely on a global
pool of labour and to ensure that their demands for labour are met, prefer this
pool has to be somewhat mobile. In the United States, Apple Inc. sees itself as
a creative corporation, not a production company
(templemediainstitutions.wordpress.com, 2017), and believes deeply in the
importance of immigration both to the company’s and nation’s future. Apple
would not exist without immigration, let alone thrive and innovate the way they
do (MacGarry, 2017). Apple believes diversity makes their team stronger; with
employees hailing from every corner of the globe and representing the finest
talent in the world. Apple’s manufacturing is largely offshore, being a global visional
company offering production work to people outside the U.S., and favouring
China with large amounts of cheap and disciplined production labour.  

Apple expects their own products to
become the leader in their category by providing remarkable user experience
through innovating original products in terms of hardware and software. As
Apple focuses more on quality and in-depth research to extend the function of
their products rather than product variety, the company requires highly skilled
engineers to improve product performance and innovate new ones. About 10
percent of Apple’s research and development comes from recent immigrants on
work visas (Balboa, 2017). President Trump’s proposed cuts on legal, as well as
illegal, immigration to give U.S. workers at home a better chance is worrying
to Apple. Such curbs would make it more difficult to find the talent the
company needs, but immigration curbs could slow long-term economic growth
(Gillespie, 2017) making their products increasingly unaffordable. President
Trump’s anti-globalist desire to slash immigrant numbers to the U.S. may be a
reason why Apple recently decided to set up R&D centres in China committing
US$500 million (Kharpal, 2017). 

Research has shown that
highly-skilled migrants and natives are imperfect substitutes for one another
in highly skilled fields. Although high-skilled migration is concentrated on a
very small labour-market segment, the low elasticity of substitution between
natives and immigrants puts a high-skilled shock on the labour market if highly
skilled migration is restricted. 
Research has found that innovation in the United States tends to cluster
regionally around where initial innovation occurs and that subsequent
innovation developments will occur in that same city. Highly skilled immigrants
are an important factor in driving innovation, as immigrant mobility means they
are flexible where they first settle in the United States. Highly skilled
natives don’t have that mobility. For Apple expanded access to global highly-skilled
labour has lowered traditional barriers to entry and increased the value of an
ahead-of-the-curve insight or innovation (Freeland, 2011).

Apple’s high skilled migrant
employees have fuelled innovation in the technology sector improving the lives
of the middle-class consumers who can afford their products, and broadly
benefited the nation and the world. Although highly educated workers enjoy more
opportunities, native workers with less education face declining employment
prospects and stagnant incomes (Freeland, 2011). There is higher elasticity of
substitution in lower-skilled and more lowly-educated labour markets. The mass
immigration of globalization hurts some subgroups within all countries,
including advanced economies. Today only thirty-six percent of Americans
consider the increasing interconnection of the global economy to be a positive
thing believing immigration destroys jobs, businesses and drains national
wealth. This widening gap between the rich and non-rich has been evident for
years with many ordinary people now seeing the globalist elites rigging the
game through narrow self-interested motives displaying casual indifference to
anyone outside their own rarefied economic bubble. Although bankers have become
objects of widespread anger, people feel they benefit from the goods Apple
produce and the jobs they create. And even if a growing portion of those
manufacturing jobs are overseas, it is better to be the home of the innovators,
both native and immigrant, than not. Therefore, technology figures, such as
Apple’s Steve Jobs and Tim Cook, as well as Microsoft’s Bill Gates, remain
heroes and their companies highly esteemed.

However, low skilled mass migration
of individuals finding it difficult to find employment in developed economies,
may find themselves reliant on state welfare. This diversity will potentially
lead to distortionary taxation, expensive and bloated government sector or
voracious redistribution (Azzimonti, 2011; Lane & Tornell, 1999). Apple
may, in future, be burdened with higher taxation and social burdens to finance
such immigration supporting an economic segment that will not be able to afford
its products. However, research has shown that multicultural urban environments
make American born workers more productive increasing efficiencies, creating
wealth (Bove, Elia, 2017). and making Apple products more affordable to
natives.

 

Conclusion – Mass Migration, for Good and Bad

 

For globalists migration, diversity
and growth are interlinked. Multinational corporations, such as Apple, reap the
benefits of skilled legal migration being more likely to source and recruit
foreign highly-skilled labour. When highly skilled migrants move from one
country to another, they carry a new range of skills and perspectives, which
nurture the technological innovation Apple needs to keep their unique products
leaders in their category, as well as stimulate the economic growth that Apple
needs to sell their expensive branded products. Their diverse and heterogeneous
teams reap the benefits of highly-skilled immigration creating organizational
synergies and stimulating the rate of technological progress in their research
and development. At the micro level team diversity has productivity-enhancing
effects and migration enhances the competitive advantage of firms affecting
overall productivity (Wang, 2014).

However, MNCs undoubtedly hire a far
higher proportion of immigrant workers on average than purely domestic
localised firms (Wang, 2014). The small and medium-sized companies that make up
the major part of developed economies primarily employ locals meaning their
teams are generally more homogenous. Therefore, large sectors of the developed
world’s economies see little productivity benefit in mass migration.
Experimental evidence has suggested that people trust those who look and speak
like them more than those who don’t (DeBruine, 2002) and both legal and illegal
mass immigration has had a marked effect on social cohesion and interpersonal
trust in Western societies. Cultural polarisation can be destabilising as
culturally fragmented societies are associated with a high degree of tension
and an inability to act collectively. Opening developed economies to mass
migration alone doesn’t necessarily benefit native workers, especially the
lower-skilled ones. Mass migration is truly a double-edged sword and there are
undoubtedly negative effects of racial fragmentation on societies (Delhey,
Newton, 2005). This negative effect can be mediated by creating the social ties
and interactions made through integrating migrants into the workforce as soon
as possible (Stolle, Soroka, Johnston, 2008) enabling them to send remittance
money home stimulating growth in their homeland creating future consumers of
Apple products.

Multinational corporations, such as
Apple, play an important role in globalization with anecdotal evidence
confirming that multinational corporations are active in creating migration
opportunities (Wang, 2014). But although natives may resent the mass migration
championed by globalists like Apple feeling their activities have negatively
disrupted their traditionally homogenous societies for narrow business
self-interest, the social incohesion prevalent in the West’s now multicultural
societies means that there can be little organized social resistance to
globalism.  Additionally, Apple’s
innovative culture and highly regarded brand mean they will always be a
well-loved MNC whether actively globalist or not.