Impact of globalisation on labour - Essay Example

Impact of globalisation on labour affiliation Impact of globalisation on labour Introduction Globalisation involved the interdependence and increased integration of the worldwide economy. It means that with globalisation there will be an upsurge in trade and upsurge in the movement of capital and labour. According to Nathan (2007), globalisation is a significant thing that benefits a nation especially those that specialise in particular products and then interchange the products with other nations.

However, globalisation does have not only positive impacts but also has some negative impacts. Free trade conditions and economic integration have formed an irresistible movement to economic globalisation. Global trade Firstly, the main cause and impact of globalisation is global trade, which has substantially expanded. Moreover, a developing trade has frequently been trailed with a growth in the economy but not in all cases. For instance, the United Kingdom (UK) is widely affected by the international economic cycle.

The profound recession in the European Union (EU) will affect the UK since the United Kingdom depends on the European Union to export the majority of its goods. Unemployment effect Secondly, is the unemployment outcome, even though the rising trade has led to the creation of more jobs, the equivalent development in competition has required many organizations to fire its employees so as to reduce costs, increase profits, and boost efficiency. Conferring to MacKinnon et al. (2011), this negative impact has had to be dealt with more so with the unindustrialized countries.

Countries like China, which in the last years has been having robust economic progress, has started to tussle with unemployment, especially in the urban areas. So it is clear that globalisation also has negative effects. Increased competition Globalisation indicates that native monopolies will now be faced with more global competition. This will assist to reduce prices and costs of products for companies so as to be able to attract consumers. Comparative advantage Comparative advantage happens when one nation can produce certain services and goods at minimal opportunity cost than other countries.

Through globalisation, the United Kingdom might benefit from majoring in products that they are likely to have a competitive advantage. This will also be beneficial to consumers as the prices for goods will be lower. Income distribution Income distribution is another impact of globalisation. Specialists propose that the augmented trade between the south and the north has minimised income inequality among the semi-skilled and skilled employees in the south. Alternatively, it has augmented the inequality in the skilled and semi-skilled employees in the north.

This is because the manufactured exports coming from the south increase wages and demand for the employees with limited education and skills, whereas the effect from the north is that the technology and service industries pay top salaries to the extremely skilled employees but have minimal use for the semi-skilled workers. Concisely, it can be concluded that globalisation appears to have extended differences in the global spread of income. Migration According to Cuyvers et al. (2011), globalisation makes it easy for immigrants to enter and work in the United Kingdom.

This can assist the United Kingdom to fill its job vacancies. Nevertheless, it also leads to larger stress on the United Kingdom public services due to the net immigration of individuals into the United Kingdom. Referencing list Cuyvers, L., Lombaerde, P. De & Rayp, G., 2011. The labour market consequences of globalisation and regionalisation. International Journal of Manpower, 32(3), pp.252–256. MacKinnon, D., Cumbers, A. & Featherstone, D., 2011. Globalisation, labour markets and communities in contemporary Britain.

Joseph Rowntree Foundation, (March). Available at: http://www.jrf.org.uk/sites/files/jrf/labour-markets-globalisation-communities-full.pdf. Nathan, D., 2007. Globalisation of Labour. Economic and Political Weekly, pp.3995–4001.