WHAT IS THE HARD BRAINING THE WORLD
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In the age of isolationism and deglobalization how will businesses in developed markets, such as Facebook, which have benefited in the past from immigrant and offshore labor, adapt to the increasing pressure imposed by governments and an increasingly restless and disenchanted public, demanding curbs in immigration and the provision of better quality jobs to citizens?
A new world?
Since his election as president of the United States in 2016, the administration of Donald Trump has taken a hard stance on immigration and proposed radical measures to control and limit immigration into the country, especially targeting illegal immigrants. This is consistent with growing sentiment among the public in the United States and across Western Europe that immigrants are making it more difficult for locals to find and keep decent jobs at reasonable wages and that immigrants also impose a significant burden on public funds, in the form of social welfare programs and using public services without contributing through taxes. As an example of this increased pressure from governments, on Tuesday, September 5, 2017, the Trump administration formally announced the end of DACA — a program that had protected nearly 800,000 young undocumented immigrants brought to the US as children from deportation (1).
Facebook responds
The announcement provoked a strong and united response from more than a hundred Silicon Valley executives, including the likes of Tesla CEO, Elon Musk, Amazon CEO, Jeff Bezos and Apple CEO, Tim Cook (2). One of the most vocal opponents to this move towards greater isolationism has been Mark Zuckerberg, CEO of Facebook. He has openly condemned the DACA decision as well as earlier decisions by the administration to ban immigration from seven Muslim countries. Facebook is especially vulnerable to President Trump’s crackdown on immigration as according to one study, more than 15% of the company’s U.S. workers in 2016 were immigrants needing work visas (3). Facebook and other technology companies (including non-tech U.S. companies) increasingly rely on a mix of local and immigrant labor to be competitive in the global market (4) and the move by the U.S. to more isolationist policies threatens to detract from the goals of companies such as Facebook to source the best talent from around the world. Facebook’s supply chain of talent is especially exposed. The response which Facebook has taken to these issues is to engage the government and voice its concerns through petitions to the government (2) and a more concerted long term effort to push for immigration reform with lawmakers on Capitol Hill (5).
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