The Globalization of Production

The influence of foreign outsourcing has adversely affected the demand for skilled labor in America and has increased wage inequality, which gives rise to the question of the relative trade and technological inequality in the U.S. and elsewhere. This can be measured by measuring technological changes by firms that have applied these changes and technological progressions to their production procedures. Outsourcing and the application of technological processes have increased the demand for skilled labor and considerably reduced the demand for unskilled labor.  To earn the best grades in your Dissertation, Thesis and college assignments you should choose an academic writing service that will meet your best writing needs.

This use of technology has dramatically changed the structure of wages and in many countries has raised the standards of living. Because of the great economic benefits that companies derive from outsourcing services and manufacturing, the practice of having most products including consumer goods manufactured in other countries and then shipped to American for finishing or just to be sold there.Many people have the misconception that outsourcing is destroying jobs in the Western World. This obviously is not true as these jobs would have been lost anyway because the cost of wages would make these products and services too expensive to produce and there place these items beyond the reach of the ordinary consumers.

During the last twenty years or so, labor markets in all parts of the globe have been more and more composite. Economic changes and political improvements have changed China, India and the Eastern European countries whose large labor force is now available in the international market. Simultaneously the rapid progress in technology and the abandoning of restrictions on trade between countries had made it possible for production processes to be located in any part of the world which has considerably reduced labor and production costs. Changes are also evident in increased immigration which has added substantially to the skilled and unskilled labor force.

This raises questions such as how quickly has the labor supply increased and which venues of labor globalization have been the most important, how can the current tendencies in labor increase and labor reimbursement in rich countries be explained by the changing labor supply as compared to other important factors like advances in technology and labor market reforms. Global labor markets have multiplied by four over the last twenty years. This increase in labor and labor markets is being used by advanced economies through different means which include the import of finished goods, outsourcing through third parties and the increase in immigration both legal and through other channels. The continuous globalization of labor has caused the increase in labor compensation in richer economies by promoted productivity which has also benefitted from increased income.

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