Nowadays global market place

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.

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One thought on “Nowadays global market place

  1. I think that physical market boundaries mean very little nowadays. Globally efficient markets relentlessly drive human resources, capital and materials. These markets do not respect national boundaries, traditions or cultures and that is just the fact that we have to accept. So companies can deal with interconnected marketplaces vigilantly aware of the rate at which globalization is happening and being as flexible as they can. They should track customers and understand how they make choices in this global marketplace. Companies should watch their suppliers and vendors closely and align their business with those who have the flexibility and scale to extract maximum global supply-side gains. If companies will manage to deal successfully with this situation then also positions for workers will be better.

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