TRADE AGREEMENTS AND TRANSBORDER FLOWS OF LABOR

(Alkhamis, et. Al, 2017) this situation cuts across in both private and the public sector. Saudi Arabia has benefited from these expatriates and at the same time it has suffered the demerits that comes with over relying on foreign workers. The reality is that; overreliance on expatriates has both positive and negative implications to the host country. This study has pointed out the benefits and cost implications of relying too much on expatriates. Expatriates have an upper hand in learning social skills and understanding behaviours. This puts them at an advantage of embracing cultural adjustments across different cultures in the host country. This benefits the host country in that; cross cultural adjustments implies that the host country`s policies, values and customs are perfectly represented, in a more accurate and realistic way.

This in return leads to success in business and driving change whenever needed. Relying on expatriates has the implication that there would be better organizational control and coordination. Eventually this leads to project failure and business inefficiencies at large, (Alkhamis, et. Al, 2017) On yet another negative point of view, reliance on foreign workers has been deemed to present ethical dilemma to both residents (citizens) and government. It leads to erosion of moral values and presents a challenge as far as work relations and welfare is concerned. (Alkhamis, et. Al, 2017), to both the employers and the government, there is a serious concern on moral obligations endowed to expatriates, since they have different orientation in other countries apart from the host country. This movement can be within an economy or among different economies.

Labor as a factor of production influences productivity and growth. Its mobility within and without economies is of paramount impact to productivity and growth at large. Free trade has been embraced by many countries in order to liberalize economy and eliminate the most conspicuous trade barriers. The reality of free trade is realized and designed by both the international and home country political environment. A divergent opinion was posed by Adam Smith when he suggested that nations cannot attain the same level of efficiency in producing certain products; instead he suggested that there should be less government involvement but advocated for free trade. A nation should be allowed to produce whatever they can produce efficiently and leave other nations to produce whatever they can produce efficiently.

Free trade should therefore join different nations and economies, through which a nation should benefit from the other nation on products they are not able to produce efficiently. In order to support free trade among nations David Ricardo introduced the aspect of relative advantage in his theory on Competitive advantage. He argued that nations could nations enjoying efficiency in producing a particular product could trade together, what matters is the relative advantage among these nations, (Held, et. , & Hassan, A. The personal and workplace characteristics of uninsured expatriate males in Saudi Arabia.  BMC health services research, 17(1), 56. Shah, N. M.  Journal of Management Studies, 43(3), 457- 484. Baki, R. Gender-Segregated Education in Saudi Arabia: Its Impact on Social Norms and the Saudi Labor Market.  education policy analysis archives, 12(28), n28.