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Geographical mobility of labor especially where cross-border movements are involved can be overwhelming with many people considering the adventure involved or even more rationally the economic gains that may come with such movement. With the idea of greener pastures and an improved standard of living, we tend to forget the pros and cons that come with it.
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Moving from Las Vegas, the USA to Winnipeg, Manitoba, Canada is an issue that must be critically analyzed for its costs and benefits. You simply have to do the math. Costs ranging from visa processing to the costs of relocation; from accommodation to income taxation, have to be considered. An economist and a student of economics alike will also look into macroeconomic factors such as inflation rates and the general market forces of demand and supply as they determine the consumer price index. Yes, you have to know how the opportunity will take charge of your health care as well as the cost of basic food and drink. It is a no-brainer that the foreign currency exchange rates will also help balance the equation and thus should not be left out.
The spot exchange rate of1 USD is 0.99 CAD. An annual income of 50,000 USD translates to 49,500 CAD. This does not include the exchange costs involved such as dealer’s commission and bank interest. Thus, moving from the United States to Canada will not be cost-effective. Some extra stipend must be included if one has to move.
In my case, I have to be offered at least 125% of my current annual income. The rationale for this is that I have to cater for the visa processing costs, the income tax, interest rates, and the general relocation costs. These costs may include the very basic transport costs and the costs of having to get to a new school. Accommodation costs, the costs of residence and work permits in the new country are also a hurdle to take into account of.
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