Globalization of Production Essay Example | Topics and Well Written Essays - 6250 words

Globalization of Production - Essay Example the skilled labors in US have experienced a steady increase, while that of the less skilled workforce have more or less stagnated or in some case, have been reduced. The inequality in the increasing wage has risen as more trade has been happened with the low wage countries. The effect of the trade on the wages cannot be identified easily as some other intensive shocks have also been occurred to the markets at same time. For an instance, the initiation of the information technology seems to raise the demand for the skilled labor and had allowed the organizations to remove number of jobs performed by less skilled workforce. In absence of clear indication, associating both wages and trade, a number of researchers have attributed the growth in skilled wage gap towards the technological change. In general, a considerable fraction of the increase in the world trade since 1970s has adopted the trade from in the immediate inputs. In particular, the rise in the world trade would take the form of foreign outsourcing. Some instances are also there; the leading shoe manufacturer Nike outsources the production of the footwear to the organizations in Asia. Dell outsources the production of both the peripheral devices as well as the components which make up the personal computers to the suppliers across the globe. Asia Pacific is a region of several contrasts. The entire region has accomplished unparalleled growth as well as development in the recent decades. However, the general scenario seems to hide a great economic diversity, development experiences as well as challenges. Asia is growingly carrying out a role of an international growth pole and is emerging as a hub for the information technology and manufacturing across the world economy and that too in a greater pace. Despite of... This paper says that in the modern times the worldwide markets are integrated in almost every respect. This integration is not just limited to exchange of goods and services rather it has extended to interlinked financial markets like stock market and money market. This process of globalisation has undoubtedly yielded positive results for the overall economy. The integration of the trading activities across the globe has enabled the consumers to use the commodities that may not be indigenously produced. Other than this various multinationals have established their operations in countries other than their base country. By way of this the host country is not just able to make use of the commodities in fact it also opens up a variety of opportunities for the host country such as higher employment opportunities, improved standard of living, improved business outlook, better infrastructural opportunities etc. However, these opportunities have also necessitated establishing a set of global laws for the regulation of the cross-border activities. This report approves that all the countries already have their own set of national laws for regulating the domestic businesses but the concept of globalisation has made it important to devise a set of global standards for the internationally operating businesses. Since the countries are now engaged in overseas businesses it is important that they adhere to a global system. An international framework will promote better relations by minimising the conflicts between two countries and will lead to overall economic prosperity.