Question

Explain how remittances from migrant workers create purchasing power in other countries. Why do migrant workers send remittances? What happens with this money?

Answer 1

Answer:

By increasing foreign reserves.

Explanation:

Remittances comes from migrant workers create purchasing power in other countries because the money is earned by the country by receiving remittances which make the country wealthier and able to purchase goods according to their needs. Migrant workers send remittances to their families that lives there in order to complete the needs of their families. This money is circling in the country and the country's financial situation goes better.