Effects of Globalization
Benefits Heckscher-Ohlin theory asserts that more abundant a factor, the lower its cost (Hill, Cronk, & Wickramasekera, 2008). High population countries like China and India, which provide abundant labours in low cost, can attract more investment from overseas. Hence, globalization can boost greater employment opportunities in less developed countries (Ghose, 2000). For example, the rapidly expanding rose industry in Ecuador generates US$240 million in sales and supports tens of thousands of jobs in Ecuador (Thompson, 2003). Apart from that, India’s computer-software and service, which is undertaking the outsourced office functions for companies based in United States, Australia and the United Kingdom, has employed 1.3 million people in 2006 (Bhattacharjee, 2006). In addition, Accenture, which is a large US management consulting and information technology firm, has recently created 5000 jobs opportunities in software development and accounting in Philippines (Birnbaum, n.d.). Procter & Gamble has also employed 650 professionals who prepare the global tax returns for the company in the Philippines (Engardio, Bernstein, & Kripalani, 2003).