Economics Essay Example | Topics and Well Written Essays - 500 words - 43

Economics - Essay Example Globalization is the reason why situations mentioned above happened in the every corner of the world. Globalization shortens the distances between people and countries and makes foreign products approachable for people all over the world. It has huge impacts on both environment and the labor markets in positive ways and negative ways.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Decades ago when people were talking about the consequences of globalization, the positive outcomes always came up first to their mind. It is true that globalization brought us whom are customers a lot convenience and broader options toward products with relatively lower prices. Because of globalization Chinese people can buy European mobiles such as BMWs without going to Europe and drive it all the back from there to China. They can order it from China without even walking out of their house; and probably the car will park in front of their house the next day after they purchased. Globalization has huge impact on labor standards mainly because it has provided many job opportunities world widely. Many international firms have their branch companies overseas in order to expand their market and reduce the cost of the company; as a result of this many job positions are provided besides the jobs in the local labor market. Different branch company of a firm has different description of their work tasks by considering the different situations in different areas, such as the different cost of labor and capital. Eventually, the labor standard is specified in each area. Countries like China and India are mainly focusing on manufacturing which needs huge amount of labor and capital such as land; because of the lower cost of labor and capital there. On the contrary, countries such as Germany and United States are focusing on financial services and technology support, which needs people will higher skills. As a result the cost of labor and