Global Labor Market example essay topic

According to the text globalization is the integration of states through increasing contact, communication and trade to create a holistic, single global system in which the process of change increasingly binds people together in a common fate. Propelled forward by increasingly new technological advances, globalization has made the world extremely small allowing people to communicate across time zones. Globalization has also brought about diminished national borders and the fusing of individual national markets, all of which have aided international growth and development. The effects of globalization have had the most effect in four areas: finance, production, labor and trade. Globalization of finance is defined by the text as the increasing trans nationalization of financial markets. Central to this idea of global finance is the concept of a consolidated financial system that is not centered on or in any one state.

This "stateless" financial system has made governmental regulations and restrictions limited, if not near impossible. Increasing technological advances in this area include electronic cash, which makes monetary transaction semi instantaneous. Globalization in production has lead to a growth in the multinational corporations and partnerships. American companies like for Ford Motor Company have begun to decentralize management, choosing instead to disperse control throughout their world offices. This move allows for less duplication in product and production, creating in essence world products.

Also by creating offices and factories overseas these MNC have been able to build strategic alliances, which allow them to reduce production cost and compete competitively with other companies. One downside to global production is a globalization in the labor market. With many companies moving their manufacturing plants overseas where labor wages are lower, globalization in the labor market has lead to insecurity in the workplace. "Globalization has exposed a deep fault line between groups who have the skills and mobility to flourish in global markets and those who either do not have these advantages or perceive the expansion of unregulated markets as inimical to social stability".

(Rodrick, 1997) In a global labor market there are clear winners and losers, for example in the United States unemployment rates are very low but worker wages have also fallen over the past decade. The last category of globalization is trade. Increased speed in communication and speed linking world market places is the primary driving force behind trade globalization. With the reduction of tariff rates, trade barriers and regulations, global trade has changed the way the world consume products and services.

So, does globalization aid or hinder states; the answer to this relies in which side of the argument you believe. Pro globalization supporters believe that globalization promotes the free exchange of information, leads to a greater understanding of other cultures and allow democracy to overcome autocracy. They point to the many social advances made possible by the creation of a global village. For example, if a disaster occurs in one part of the world because of the globalization in media outlets those images can be beamed around the world in a matter of minutes; subsequently other countries are able to send help within a matter of hours and / or days. Anti-globalization supporters argue that the gains made through globalization have come at the expense of underdeveloped countries.

They also argue that the national cultures and identities of underdeveloped countries are in danger because of what has been termed "Americanation."Americanation" is the spread of American ideas, values and culture throughout other countries. The spread of satellite television, movies, clothing, international media and increased levels of international travel are all symptoms of Americas desire to spread its germ.