Free «Labour Markets» Essay Sample

Globalization refers to the worldwide integration of production, consumer markets, cultures, labour, technology and investment which has created better living standards and created wealth for thousands of individuals. Globalization is therefore affecting the lives of so many people on the world because it is a very important aspect on the labour markets. Globalization enables new labour markets to be opened in various countries all over the world and therefore enhancing the exports of their products among various countries. This trading among various countries allows access to labour markets comprising more tan six billion people.

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Globalization has a great impact on labour markets on the world because it enables markets which have more resources than they can consume to sell them to other nations and therefore enable them to buy other products from other markets. Globalization enables export growth which in turn is very essential for job creation and economic growth. Newly competitive manufacturing companies earn higher wages as compared to industries which serve the local markets and as such, having a bigger market where a country is able to sell its products means the country can be able to sell most of its product to earn higher profits and therefore pay higher wages.

Globalization has forced so many changes on labour markets and therefore created a lot of economic changes across the globe. Globalization has led to spectacular technological advances on labour markets and therefore enabled so many countries to sell their products to people all over the globe. The growth of the world population from 2.5 million people in the last fifty years to 6 billion currently has made the average per capita of the world to increase by two fold and therefore had an impact on globalization. The impact of globalization on markets has therefore led to improved communication and modern day developments like the use of e-commerce. Globalization has made the labour markets therefore to become small places indeed.

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