The globalisation refers to the process of increasing economic, technological and cultural interdependence what cross national borders. That is used by different groups and for different purposes. There is some pressure in the potential new business opportunities; other highlights the risks of change, in specific concerning works moving to low-cost countries.
Companies can decide to produce services or goods in any place where is workers with right skill levels and they are available at a low price. This increases competition between creates and workers uncertainties work security. Is the fear of jobs moving on a massive scale from high wage Europe to low wage countries justifiable?
Just 8% of work losses between 2003 and 2006 were due to companies deciding to move their activities to some another country. Anyway, public perceptions are very different and proportion of European citizens seeing globalization as a threat to employment went up from 39% (2003) to 47% (2006).
Even whit good planning by companies or policymakers, structural change will lead to the loss of works and at last unemployment. Active Labour Market Policy (ALMP) approaches to supporting workers who have lost their works because restructuring. This consists of a series of measures like:
– professional guidance
– training and re-training
– entrepreneurship promotion
– mobility allowances
– pay subsidy vouchers
– professional skill and competence analyses
Globalisation is setting pressure on European companies to adapt business strategies (including location and sourcing decisions) to an increasingly competitive business environment. India and China is becoming remarkable players on the world stage and are competing in high skill products and services. Globalisation as well requires trade unions and other bodies representing workers to adapt.
As consumers, European citizen’s benefit from globalization is lower prices and wider choice for goods and services. As workers, many of them fear that their works may be moved to cheaper locations. Is it possible to create that kind of situation where the interest of consumers and workers are reconciled? Integrated and coordinated strategies are needed to improve quality of live and work in globalised world.