Globalization

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Globalization and its effects on organizations and employees around the world

What is globalization and what are the effects of it on organizations and employees? The aim of this essay is, with the help of relevant sources, to clarify the term globalization and determine its impact on the work force and businesses. Buchanan and Huczynski (2010) has defined globalization as “the intensification of world-wide social and business relationships which link localities in such a way that local condition are shaped by distant events”. Globalization can be of different of different nature – for instance – political, environmental and economic( Di Pietro). In this essay, attention would be paid to the economic factor in order to review how economic globalization influences the employment. Firstly, economic globalization might impact on the number of jobs that are available and therefore, affect the employment rate and the employment- to-population ratio. As globalization is differently influential on micro-economic level, i.e. establishment, enterprise, economic activity and macro-economic level – total economy, it is what has made this particular issue a more complex one. As an example, offshoring can be pointed. When an enterprise is closed in one country and moved to another, this may lead to job losses in a certain economic activity of the first country. In addition, it might result in more working places for the same country due to the higher productivity in the other established enterprises, higher wages and higher consumption demand. (Kazi, T., 2011, Di Pietro) Another effect of the economic globalization may occur in the structure of jobs – their distribution across economic activities. Jobs which are connected to some economic activities have the tendency to vanish while jobs linked to other economic activities, are established as a means of changing competitive advantage. In this case, not only the economic globalization may cause the changes on job structure,...
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