The world is quickly becoming so integrated that it is difficult to think of any nation in absolute isolation. Gone are the days when people from one region would think of themselves as unique, and plan for their activities without putting people from other areas in mind. Nowadays, it is quite easy for people to have investments in different continents and still be able to regularly follow them up.
On the same note, the need for people to increase market for their products has led to foreign adventures, which have advanced interrelations in the world. As a result, globalization has inevitably become part of the world and any step that is taken by people should have this in mind.
Globalization has not only led to advancement in technology and increased volumes of trade, but has also had both positive and negative effects on people. It should be noted that American workers are among people who have experienced first hand effects of Globalization.
Globalization is a term that is used to refer to the linkages between countries. For the most part, it focuses on reduction of barriers of trade not only among neighboring countries, but also among countries all over the world.
Moreover, globalization is used to refer to the economic inter-dependency that has emerged among countries, where countries depend on one another for demand and supply of both raw materials and finished products (Waldinger and Michael 29).
Globalization involves free movement of goods and services across borders, movement of information and technology from one country to another, and exchange of culture resulting to specialization and comparative advantage. It should be noted that the definition of globalization also includes political interdependency that has lately increased in the world (Schaeffer 79).
Globalization has had a lot of positive effects to the American worker. To begin with, the volume of trade has been increasing over the years since countries agreed to open their boundaries to international markets. Countries have increased demand for goods and services forcing firms to increase their production, thereby increasing employment opportunities (Vallas, William and Amy 211).
On the same note, due to reduced trade barriers many firms have invested in America. These firms have increased employment opportunities in America which has made it easy for the American worker to get employed.
Similarly, foreign direct investment has led to increased competition for labor in America. In this regard, the American worker has been able to bargain for improved payment and this has led to increased average earnings. In addition, companies are constantly searching for ways of improving their products so that they can stand a chance of competing favorably.
As a result, this has led to increased research by firms resulting to advanced technology (Schaeffer 103). The advancement in technology has reduced the work load to be accomplished by workers besides easing workers’ tasks.
In addition, globalization has led to increased flow of information and increased awareness. Therefore, concerns about working conditions and safety of workplaces for employees of various companies have increased. Consequently, many companies have had to change working conditions for their employees, especially in regions where terms of employment as well as working conditions were bad.
American employees have therefore gained immensely due to globalization. Furthermore, there has been an increase in employment opportunities because one can search for employment even in foreign countries, or in the foreign firms that invest in the local economy (Vallas, William and Amy 121).
On the same note, foreign firms have always had to employ people from different cultural backgrounds. Therefore, employee training is necessary so as to enhance good co-existence. The American worker has been on the receiving end as their knowledge has constantly been improving through regular training.
Besides the positive impacts that globalization has had on the American worker, there are some negative ones as well. First and foremost, companies have been hiring even from foreign countries, which has led to migration of skilled workers from developing countries to developed countries.
This exodus is attributed to the availability of high wages and better working conditions in developed countries, especially America (Waldinger and Michael 81). This has led to increased competition for employment opportunities in the American economy. As a result, it has become a bit difficult for American professionals to secure employment.
On the same note, globalization has led to increased immigration into the United States of America. As a result, labor supply has been in excess compared to demand. Consequently, the immigrants have taken up the low-skill job opportunities which would have been allocated to the local people (Schaeffer 115).
Additionally, the influx of the immigrants has reduced the average wage rate that low-skill jobs attract, because immigrants are ready to work for low wages.
Globalization has also increased the ability of firms from developed countries to access cheaper labor from developing countries through outsourcing. Outsourcing refers to the process of contracting another firm to perform certain functions which were being performed internally.
The aims of outsourcing are to gain competitive advantage, increase efficiency in execution of duties and reduce cost of production. Some firms go to the extent of transferring the whole department to the outsourced firm, including the employees. As a result, many firms have reduced the number of employees from developed countries and increased their outsourcing, mostly from emerging markets.
Consequently, developed countries have found themselves in a mess as employment is shifting to emerging markets, while employment rates are declining in their economies due to high labor costs (Waldinger and Michael 235). In this regard, the American workers have found themselves it the predicament of loosing employment opportunities to people from emerging markets.
Furthermore, globalization has led to increased entry of goods into the American market. Consequently, aggregate demand for local American commodities has reduced which has compelled producers to scale down their operations.
Among the steps that firms take while reducing their output include reducing their labor requirements. Unfortunately, this basically means that employment opportunities are reduced leading to increased unemployment rates in America (Vallas, William and Amy 94).
Globalization has led to increased efficiency thus enhancing competitive advantage. Information technology is an inevitable component which pushes globalization and should be handled with care. However, it should be noted that the American worker has really enjoyed the fruits of globalization, starting from increased job opportunities to increased training.
Regrettably, globalization has negative effects too, and these should be taken into consideration. It is unfortunate that these negative effects may end up being detrimental to world economies if not adequately addressed. As a result, it is paramount for a nation to weigh the advantages and disadvantages of any action related to globalization and take necessary steps to protect the economy.
Works Cited
Schaeffer, Robert K. Understanding Globalization: The Social Consequences of Political, Economic and Environmental Change. Lanham: Rowman & Littlefield Publishers, 2009. Print.
Vallas, Steven P., William Finlay and Amy S. Wharton. The Sociology of Work: Structures and Inequalities. New York: Oxford University Press, 2009. Print.
Waldinger, Roger and Michael I. Litcher. How the Other Half Works: Immigration and the Social Organization of Labor. Berkeley: University of California Press, 2003. Print.