The US anti-immigration laws are bankrupting the Silicon Valley (Tech Crunch). H-1B – work visa – related costs and quotas impede American tech companies from employing foreign minds trained in American universities .
Running a business (profitably) is not easy; an economic crisis and the world wide competition in the industry will make sure you constantly optimize your costs and outputs. By all means, cutting back on costs is vital. In the tech industry’s case, firms look up cheaper yet highly skilled sources of labor – foreign labor. International students in US universities acquire virtually the same level of skills as their American colleagues, yet because of their lower opportunity costs in their home markets they will settle on mutually agreed lower wage rates with US employers. Cheaper yet equally or more productive labor will improve firms’ cost structure which in turn will lead to an increase in revenues, and maybe even profits! Continue reading ‘Trouble in the Silicon Valley. Blame USCIS’
