The wikitionary defines arbitrage as the practice of quickly buying and selling foreign currencies in different markets in order to make a profit.
H-1B visa program helps the US companies to hire cheap labor from developing countries such as China and India to save expenditure to the company. The recent news of sink in H-1B Visa program, renewed the debate of American local labor being replaced by foreign nationals who immigrate to the U.S using H-1B visa.
Some local U.S people consider H-1B program to be “a thinly disguised labor arbitrage”. “The visa people save like tight wads and spend their money in their home countries where the value of the currency is higher”, they poignantly countered the issues of H-1B visas. Here is a fair list of the U.S companies that either outsource their jobs or hire H-1B holders.
In countries such as India, there is no labor arbitrage. People from China are willing to work for cheaper wages, but either they are banned or discouraged politically.
On the other hand, tech industry considers H-1B program as critical for the growth of America as they hire the brightest professionals in the world.
Matthew Schwingel from the U.S comments: “My firm recently recruited on the University level for a PhD position in electrical engineering. Nearly 200 resumes were collected and over 90% came from students requiring H-1B sponsorship. If we can’t find an easy way to keep these highly educated individuals in the U.S., then we are pushing them into the hands of our foreign competitors who will use their skills against the U.S. companies which will only create more job losses over the long term.”
In March 2008, even Bill gates urged U.S Congress, second year in a row, to let more foreign born nationals to work for the U.S companies. He also stated, “These top people are going to get hired for sure. It is only the question of where.”
What is your take on this issue? Will employment of foreign nationals help America in a long-term? Comment below.
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