Critical Thinking: Trade Agreements And Transborder Flows

Critical Thinking Trade Agreements And Transborder Flows Of Labor C

Critical Thinking: Trade Agreements and Transborder Flows of Labor. Chapter 9 The Saudi Arabian economy has developed with the use of large numbers of expatriate workers. In a critical essay, indicate the benefits and risks associated with the dependence on large numbers of expatriate workers. Should Saudi Arabia seek to include or exclude labor mobility in future regional free trade agreements? Why or why not? What implications does the Saudi Vision 2030 have on labor mobility? Directions: Your essay is required to be four to five pages in length, which does not include the title page and reference pages, which are never a part of the content minimum requirements. Support your submission with course material concepts, principles, and theories from the textbook and at least three scholarly, peer-reviewed journal articles. Use the Saudi Digital Library to find your resources. Use Saudi Electronic University academic writing standards and follow APA style guidelines. It is strongly encouraged that you submit all assignments into Turnitin prior to submitting them to your instructor for grading. If you are unsure how to submit an assignment into the Originality Check tool, review the Turnitin—Student Guide for step-by-step instructions. Review the grading rubric to see how you will be graded for this assignment.

Paper For Above instruction

Introduction

The Saudi Arabian economy has historically relied heavily on expatriate labor to sustain its rapid development and economic diversification. This dependence stems from the need for skilled and unskilled labor to work in sectors such as construction, oil, services, and manufacturing. The extensive use of expatriate workers has contributed to economic growth, but it also introduces significant risks and policy implications, particularly in the context of evolving regional and global trade agreements and the ambitious reforms outlined in Saudi Vision 2030.

Benefits of Reliance on Expatriate Workers

Dependence on expatriate workers provides numerous economic advantages for Saudi Arabia. First, expatriates fill critical gaps in the labor market, especially in sectors where local workforce development lags behind. According to Alkhathlan and Javid (2018), foreign workers bring specialized skills, bolster productivity, and contribute to economic diversification. Second, the influx of expatriates supports the government's economic diversification goals by providing the necessary workforce for sectors targeted for growth under Vision 2030.

Additionally, expatriate workers often fill low-cost labor roles, helping keep inflation in check and enabling competitive pricing in sectors like construction and retail. Their presence also fosters cultural diversity and international connectivity, which can benefit trade and investment relationships.

Risks Associated with Heavy Dependence on Expatriate Workers

However, heavy reliance on expatriate labor carries significant risks. One major concern is economic vulnerability; over-reliance on foreign workers may limit local workforce development and reduce incentives for domestic job creation. Al-Sowayel (2019) points out that excessive dependence can lead to social tensions and political instability, especially if expatriates are perceived as taking jobs away from nationals or not integrating adequately into society.

Further, geopolitical risks such as regional conflicts, travel restrictions, or economic sanctions can disrupt expatriate flows, impacting critical industries. The COVID-19 pandemic highlighted these vulnerabilities, with many expatriates fleeing or unable to return, leading to labor shortages in key sectors.

Additionally, dependence on expatriates often results in a dual labor market, which can exacerbate social inequalities. Long-term reliance may impede efforts to develop a competitive and skilled local workforce, contradicting Vision 2030's emphasis on nationalization of the labor market.

Including or Excluding Labor Mobility in Future Trade Agreements

Regarding future regional free trade agreements, Saudi Arabia should carefully consider the inclusion of labor mobility provisions. Including labor mobility can facilitate the movement of skilled and unskilled workers across borders, fostering regional economic integration and addressing domestic labor shortages. According to Baharumshah and Amal (2020), regional labor mobility promotes economic efficiency through resource allocation and enhances competitiveness.

Conversely, excluding labor mobility might serve to protect local employment and safeguard cultural cohesion, but could also hinder the benefits derived from regional trade liberalization. Given the strategic goal of Vision 2030 to diversify the economy and promote innovation, facilitating labor mobility aligns with the broader objectives of knowledge transfer and regional cooperation.

Implications of Saudi Vision 2030 on Labor Mobility

Saudi Vision 2030 significantly influences labor mobility policies. The initiative emphasizes localization initiatives like Saudization, which aims to increase employment opportunities for Saudi nationals in various sectors. While promoting employment for locals, Vision 2030 also recognizes the need for a flexible and adaptable labor market that can attract foreign talent when necessary.

Furthermore, Vision 2030 advocates for economic diversification, which will require both the mobility of Saudi workers abroad for skills development and the attraction of expatriate specialists. Policies are expected to balance nationalism with openness to international labor flows, thus fostering a more dynamic and competitive labor market.

Concluding Remarks

In conclusion, reliance on expatriate labor has played a vital role in Saudi Arabia's development but presents notable economic and social risks. Inclusion of labor mobility in future trade agreements will likely benefit regional integration and Saudi economic objectives, especially under Vision 2030. Nevertheless, it must be accompanied by policies that promote the development of a skilled Saudi workforce to ensure sustainable growth. As Saudi Arabia continues its path toward economic diversification, balancing the benefits and risks of expatriate dependence and labor mobility will be crucial for long-term stability and prosperity.

References

• Alkhathlan, K., & Javid, M. (2018). The impact of foreign labor on economic growth: Case study of Saudi Arabia. Journal of Economics and Development, 20(2), 45-60.
• Al-Sowayel, M. M. (2019). Social and economic implications of expatriate workers in Saudi Arabia. International Journal of Sociology and Social Policy, 39(3/4), 256-270.
• Baharumshah, A. Z., & Amal, A. A. (2020). Regional labor mobility and economic integration in the Gulf Cooperation Council countries. Journal of Regional Studies, 33(5), 456-470.
• Javid, M., & Alkhathlan, K. (2018). Foreign workers and economic growth in Saudi Arabia. International Journal of Economics and Business Research, 16(4), 321-337.
• Vision 2030 Kingdom of Saudi Arabia. (2016). National Transformation Program 2020. Riyadh: Saudi Government Publishing.
• Gulf Cooperation Council. (2021). Labor mobility and regional integration report. GCC Secretariat.
• Smith, J. A. (2020). Expatriate labor policies in the Gulf: Economic benefits and social challenges. Middle East Journal, 74(1), 102-118.
• Rose, S. (2019). The role of foreign labor in Saudi economic development. In J. P. Smith & L. Chen (Eds.), Economic Diversification in Saudi Arabia (pp. 89-105). Routledge.
• OECD. (2022). International migration Outlook: Mobility and regional cooperation in the Gulf Cooperation Council. OECD Publishing.
• Almadhagi, M., & Kattan, R. (2021). The impact of Saudi Vision 2030 on foreign investment and labor mobility. Journal of Economic Policy, 42(3), 225-240.