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One company hires the programmer and the other company then gets to point to the existing market and note that there aren't any candidates for the position.


Except there are, since the second company could hire the programmer away from the first company by offering a higher salary. In general, thinking like an economist requires that one treat supply (and demand) as functions of price, not as absolute numbers.






The company "has to hire natives first" because there is a regulation saying that the company has to hire natives first. That regulation would say what counts as trying to hire natives first. And it won't say the company has to try hiring the employees of other companies.
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Jiro
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