ABSTRACT
Classical free trade theory assumed that goods could often be readily traded across national borders but that the factors of production employed to produce those goods (land, capital and labour) were fi xed and immobile. In the contemporary world, largely owing to technological changes, this has become dramatically untrue of capital, and much less true of labour. There are currently 192 million people, including 16 million refugees, living outside their countries of birth. Today, approximately 1 out of every 35 persons in the world is a migrant. 2 However, the frequent political resistance to international mobility of goods, services and capital is often dramatically intensifi ed in the case of the international mobility of people and is refl ected in restrictive immigration policies in many countries. Here we move from the domain of international trade policy to the domain of immigration policy. The most critical linkage between the two relates to international trade in services, especially services that require physical proximity between service supplier and service user. As international trade in services of various kinds continues to grow, the line between trade in services and migration of people becomes increasingly blurred.
