Why do workers say globalisation is good

Many types of manufactured goods mainly require relatively low-skill labour to produce especially goods such as textiles and footwear, motor vehicles, electronic consumer goods. Developing countries, where wages paid to low-skill labour are much lower than in developed countries, are able to produce these manufactured goods more cheaply.

As developing countries such as China have increased their engagement with international trade this has caused a large-scale switch in the location of production of manufactured goods — from developed to developing countries. Recent research has found that low-skill workers in the US have been made significantly worse off by the transfer of manufacturing activity to China.

The research estimates that, without the rise in Chinese imports, there would be , extra manufacturing jobs in the US today. This negative effect on annual earnings has been largest for workers with the lowest earnings. Another important finding is the role of location in explaining the impact on the US labour market of increased imports from China.

Manufacturing industries facing competition from China are concentrated in particular locations in the US mid-west and south-east. It is in these regions that the impact on low-skill workers has been largest.

The geographic concentration also explains why it is taking workers who have been adversely affected so long to get back into work. A larger number of job seekers chasing the available job vacancies in a region means longer average times spent out of employment.

Manufacturing workers in the US may have been made worse off by globalisation, but economic theory predicts that there should also have been winners in the US. In addition policies of structural adjustment such as privatization imply an increase in unemployment since privatization is accompanied usually by a reduction in the demand for labor.

Finally the theoretical predictions about the employment consequences of trade liberalization are based on assumptions of full employment of resources and flexible labor markets.

Labor supply trends by region, Working age population millions. South Asia. Sub-Saharan Africa. Source : Betcherman, G. Saudi Arabia.

United Arab Emirates. Effect on real wage levels of the work force. Trade flows lead to shifts in the demand for labor, as more workers are needed in newly profitable sectors and fewer in unprofitable sectors. If the supply of labor is fixed these demand changes lead to a rise in wages to more profitable industries. Competition by imports might lower the price of products by low skilled labor relative to the price of products made by skilled labor, so that domestic firms shift toward producing skill intensive goods, which will lead to a lower real wage level for the majority of work force, the unskilled in developing countries Rama,M.

Some western companies ship their production overseas to countries like China and Malaysia, where lax regulations make it easier to exploit workers. For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult.

Additionally, global businesses must keep up with different and ever-changing labor laws in new countries. When expanding into new countries, companies must be aware of how to navigate new legal systems. Otherwise, missteps lead to impediments and severe financial and legal consequences. The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. Many countries around the globe are tightening their immigration rules, and it is harder for immigrants to find jobs in new countries.

This rise in nationalism is mainly due to anger from the perception that foreigners fill domestic jobs or at companies moving their operations abroad to save money on labor costs. For example, the Economic Policy Institute reports that the U. Both the benefits and challenges of globalization change how a business operates in different ways.

When companies decide to go global, they must be ready and willing to change internal processes. This helps to accommodate new markets and make their global workforce feel comfortable and accepted at work.

Companies see many aspects of their businesses change once they enter the global marketplace. For example, globalization makes the workforce more diverse. This diversity is an overall positive change, but it creates some challenges, such as language barriers and differences in cultural expectations. Before starting to branch out from headquarters, firms have to put an established internal communication plan in place since global employees likely work in a different time zone and have a different native language.

Software and other digital tools help smooth global communication hurdles and allows teams to connect easily. Zoom, Slack, and Google all provide valuable tools for companies trying to manage employees in multiple offices, countries, and time zones. Foreign employees have different expectations when it comes to things like salary and benefits, as well as how they manage their daily work schedules. Companies that want to take advantage of globalization and hire foreign workers need to accommodate them as much as possible.

HR teams must also ensure their offers are competitive and on-par with local expectations during the hiring process. Similar to communication changes with employees, companies must also plan for how they run customer service and support in new countries. Customers in the new market where you offer your products or services might not speak your native language or be close to your time zone.

International companies have to adjust more than internal operations. Going global opens up new revenue streams and increases availability to talent. Because of these attractive benefits, and the ease of going global due to services like International PEO, the global marketplace is competitive. As globalization becomes the norm, many companies often seek the same foreign markets, which increases competition for businesses.

Just like hiring employees in different countries creates internal communication challenges, marketing your products or services to a completely new audience creates obstacles for companies. Businesses need to adjust their marketing strategies to communicate the benefits of their product in a way that resonates with a foreign audience.

You cannot assume that a marketing campaign targeting an American audience or wherever your HQ location is attracts consumers in Europe, Asia, or any other popular market, as the consumers there have very different wants and needs. In the past, cost and regulatory challenges were massive barriers to companies going global in search of the benefits of globalization.

Now, partnering with a globalization expert helps firms navigate any challenge that comes their way—while successfully setting up an overseas presence. Our International PEO solution helps organizations establish a presence in new international markets, without the time and costs associated with entity establishment. The right International PEO partner helps your company experience the benefits that globalization has to offer and quickly become a successful player in the global marketplace.

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