Saudi Arabia to Reduce Reliance on Foreign Workers Overseas News
Saudi Arabia has announced plans to reduce its reliance on foreign workers by recruiting only highly-technical workers and monitoring investments closely.
“The Kingdom will now be more selective in hiring foreign workers,” said Ibrahim Al-Assaf, Finance Minister, while giving highlights of the annual budget announced by Custodian of the Two Holy Mosques King Salman here Monday.
Al-Assaf said that the Kingdom had made substantial progress in training and absorbing qualified Saudi professionals and workers in different sectors, according to the Saudi daily (Arab News).
“Hence, the plan to reduce its reliance on overseas workers is quite logical,” said the minister, while pledging to facilitate implementation and completion all “projects in the pipeline like Riyadh Metro and other mega transport projects.”
To this end, he said that the government has announced several measures to meet the financial shortfall because of the falling oil prices.
He, at the same time, allayed fears of expatriates and rejected rumors, saying that the Kingdom has no plans to introduce individual income tax in the country. There is no intention and no plans to impose taxes on the income of expatriates.
The Kingdom is home for over 10 million foreign workers. Major labor exporting countries include India, Pakistan, Indonesia, Philippines, Sri Lanka, Bangladesh and a few African countries. More than 125,000 US and Western expatriates also live and work here. Saudi Arabia does not collect income taxes from foreigners. But, Monday’s statement released by the Ministry of Finance suggests that the finance ministry realizes that this cannot go on forever. (QNA)
Over the range of production in which marginal product increases and the variable input experiences decreasing marginal returns brought on by the law of diminishing marginal returns, the marginal cost curve is rising.
The correspondence between the marginal product and marginal cost curves indicates that the law of diminishing marginal returns is the key reason for increasing marginal cost. This further implies that the law of supply and the positively-sloped supply curve can be explained in the short run by increasing marginal cost.
Marginal Cost and Marginal Product
This diagram displays the marginal product and marginal cost for the production of Wacky Willy Stuffed Amigos (those cute and cuddly armadillos, tarantulas, scorpions, and rattlesnakes). The top panel presents the marginal product of the variable input used to produced Stuffed Amigos. The bottom panel contains the marginal cost of producing Stuffed Amigos.
The marginal product curve in the upper panel has a distinctive hump-shape, with marginal product rising, reaching a peak, then falling. The rising portion of the marginal product curve is the result of increasing marginal returns. The falling portion is attributable to decreasing marginal returns, and in particular, the law of diminishing marginal returns.
The marginal cost curve in the lower panel has a distinctive U-shape, with marginal cost falling, reaching a minimum, then rising. The falling portion of the marginal product curve is the result of increasing marginal returns. The rising portion is attributable to decreasing marginal returns, and in particular, the law of diminishing marginal returns.
The marginal cost curve can be thought of as something of a "reflection" of the marginal product curve. This reflection is not a perfect image, but it captures the essence of the shape.