The effects of globalization of the labor market Essay

The effects of globalization of the labor market - Essay Example With Globalization being such a used function of the world’s economic market, there was and is an effect on the labor market. The definition of globalization is highly contentious among professionals in the field of economics and business. Globalization is a term for the process of international integration brought upon by interconnectivity of cultural aspects.1 Cultural aspects can be further defined as technology, religion, infrastructure, and manufacturing processes. There are many types of globalization; increased internet activity, international cell phones, and aviation. Labor Market is a term that will be used that means the interaction between the workers and the employers. With globalization this could mean workers in one location and employers in another. This is an important topic to discuss as globalization of the labor market has increased the living wage of many countries and is the only income that some developing countries acquire. There are many good aspects o f globalization that increases the health and education of many third world countries. However, there are aspects of globalization that have both positive and negative aspects. The globalization that most people think of the most is the usage of other countries to assist in the production or manufacturing of products for consumption or use. This is known by many currently as outsourcing. While outsourcing is not the only form of globalization, this is the one element that has become a hot topic politically due to the extent and negative elements. Outsourcing is a negative form of globalization to portions of the United States, while for others it is one of the best things that has occurred. Globalization does many things both negatively and positively to the labor market. It is an understanding of these benefits and consequences to determine if a select labor market will gain from becoming a part of the world market. What globalization can do for a developing country is to bring in technology, education, training, and science that were not previously available to the citizens. Depending on the industry brought in, an increase of available jobs and increased wages will also occur. Regardless of what occurs there will be new opportunities in many sectors for individuals otherwise not available due to education or geographical location. With every benefit comes a detriment or at least the possibility of a detriment. With regards to globalizations effect on the labor market many things could prove costly and negative. With an increase in skilled labor needs, there is a drastic decrease in unskilled or ordinary workers which could lead to an increase of foreign workers and increase unemployment among native employees.2 Another thing that technology does is decrease the overall work force needed to complete the same task. For countries with a large work force, this technology could prove highly costly to the labor market. Most employers of large industries that beli eve in globalization do not maintain a large presence in developing countries. What this means is that most of the money created by native workers is siphoned back to the employers native country, leaving the developing nation without resources to develop.3 If this market globalization comes at the heels of international grants of money or resources, the country that received the funds will have to go through a process of privatization which is highly