00:01
In this problem, we are examining the decision to immigrate and what goes into that decision, what factors specifically.
00:11
And starting off, we need to think about immigration as an investment.
00:15
So to break this down here, an investment just in general terms is just a current sacrifice for future benefit.
00:22
And you're aiming for growth in the future.
00:25
And i underline the two components here is sacrifice and the benefit.
00:29
So in terms of economics and especially immigration, we have to break this down.
00:34
So sacrifice is going to be your cost.
00:36
And obviously benefit is going to be your benefit.
00:40
So costs are going to be your explicit or implicit cost.
00:44
And benefits can be something more direct such as like money or wages or even higher standards of living, which are not as direct as money.
00:52
But an investment, we're looking for growth in the future.
00:55
So with this, we have to kind of see.
00:59
Which it outweighs which decision.
01:02
And that's how we're going to make our investment or see if it's a good investment at least.
01:06
So the goal of immigrating would be, or any investment would be to have your benefits outweigh the cost.
01:12
And that's what we're aiming for here.
01:14
We're going to get into detail about each cost and the benefits of immigration here.
01:19
So this next part is asking us for what countries or why do some countries have more immigrants than others, or why do immigrants choose some countries over others? and this ultimately is the benefits portion of our equation up here because we are trying to have the most amount of benefit.
01:40
We're trying to maximize benefit and minimize costs so that this is the greatest possible outcome.
01:47
So just in general, we're looking for higher pay for human capital.
01:51
The human capital being specialization or just knowledge in specific fields that you can provide to someone's economy.
01:58
And just an overall standard of living.
02:00
So we find differences between countries in this.
02:03
Obviously, not every country provides the same.
02:06
So we're looking at wage differences and differences with educational opportunities, the health care quality, along with welfare benefits.
02:14
All these vary and all these are factored into your decision as to making an investment into your future by immigrating.
02:23
And then building off of this, we're now looking at cost.
02:25
So this is this part of the equation.
02:29
We're looking at cost.
02:29
We're trying to minimize these.
02:31
So the first type of cost is very direct.
02:33
It's an explicit cost.
02:34
And this is your out -of -pocket expenses.
02:37
So in terms of immigration, we're thinking of a green card fee or in general, just the moving expenses of immigrating.
02:46
And building off of that, we have the implicit cost.
02:48
Once again, these are the two parts of our cost equation, the cost part of the equation.
02:54
And the implicit is.
02:55
Is indirect.
02:56
It's your opportunity cost.
02:59
In terms of immigration, this would be the foregone income left in the home country while finding a new job in this new country.
03:06
So while someone's immigrating, they don't have that job that they had in their first country.
03:12
And all those wages that they could have been earning, that's your opportunity cost that's lost.
03:16
And of course, you want to minimize this by finding a job as soon as possible.
03:21
And then this would be lowered...