How Do Labor Forces Influence International Business?
International Business is when corporations conduct business within in the global market. In order to be successful, international business requires a great deal of strategy. It is important to understand not only the political, cultural, monetary aspects but also the basics of labor forces and how they influence international business.
Labor Quality
Labor quality is an essential component to consider. Prior to finalizing business contracts and moving to expansion, the labor force should be analyzed in order to determine whether the right skill levels are available to profitable conduct business. There are several factors that influence the quality of labor such as education, experience and proficiency. There are also factors that affect the price of labor for example larger supplies of labor, lower demand for labor, lack of labor unions and lack of governmental rules & regulation.
Labor Quantity
The same factors that affect the quality of labor also affect the quality of labor. Factors such as capability, creativity, managerial skills, knowledge, ability to learn new things and adaptability to changing environment must be considered while hiring candidates.
Labor Mobility Labor mobility “consists of changes in the location of workers both across physical space
(geographic mobility) and across a set of jobs (occupational mobility).” Labor mobility allows the workers to improve economic conditions if where they live is not a match for their skill. Minorities and or traditional societies are another important group to consider. This group is defined as “a relatively smaller number of people identified by race, religion, or national origin who live among a larger majority.” An advantage for to hiring minorities in a foreign country would be the immediate availability of labor. A disadvantage would be discrimination as they may be viewed as inferior to the majority.
Labor Market
Labor market is the market in which there are many different firms and
Labor Quality
Labor quality is an essential component to consider. Prior to finalizing business contracts and moving to expansion, the labor force should be analyzed in order to determine whether the right skill levels are available to profitable conduct business. There are several factors that influence the quality of labor such as education, experience and proficiency. There are also factors that affect the price of labor for example larger supplies of labor, lower demand for labor, lack of labor unions and lack of governmental rules & regulation.
Labor Quantity
The same factors that affect the quality of labor also affect the quality of labor. Factors such as capability, creativity, managerial skills, knowledge, ability to learn new things and adaptability to changing environment must be considered while hiring candidates.
Labor Mobility Labor mobility “consists of changes in the location of workers both across physical space
(geographic mobility) and across a set of jobs (occupational mobility).” Labor mobility allows the workers to improve economic conditions if where they live is not a match for their skill. Minorities and or traditional societies are another important group to consider. This group is defined as “a relatively smaller number of people identified by race, religion, or national origin who live among a larger majority.” An advantage for to hiring minorities in a foreign country would be the immediate availability of labor. A disadvantage would be discrimination as they may be viewed as inferior to the majority.
Labor Market
Labor market is the market in which there are many different firms and
References: Stephen Taylor (2008) International Business Center. Retrieved July 27, 2008 from website: http://www.international-business-center.com/ Long, J and Ferrie, J (n.d.) Labour Mobility. Oxford Encyclopedia for Economic History. Retrieved July, 27, 2008 from website: http://faculty.wcas.northwestern.edu/~fe2r/papers/Labour%20Mobility.pdf Ball et al (2005) International Environment Forces. Labor Forces. International Business 10th edition, McGraw-Hill Companies.