Globalization

Globalization is essential in determining the level of employment in a particular country.
If unchecked, globalization can often increase internal competition between firms, resulting in
the closure of financially unstable ones. Remarkably, the closure of businesses leads to large-
scale unemployment, which is detrimental to economic growth. Additionally, an increase in the
volume of imports from low-wage producing nations often results in reduced jobs from
manufacturing industries, especially labor-intensive ones. Notably, increased globalization may
depict a rapid growth in foreign direct investment, augmenting unemployment rates.
Based on the implications of globalization, enforceable labor standards should be
incorporated in free trade agreements to prevent unwarranted employee layoffs. Governments
and industry players must enforce labor standards to protect local businesses from external
competition. Unions must also enforce labor standards to protect employees from unscrupulous
business owners. Unions often advocate for the rights of employees.
Increased globalization affects U.S managers because they have to retain employees even
when local businesses are underperforming due to increased competition from foreign
companies. In such a scenario, managers of organizations realize reduced profits, which can
significantly affect their business operations. Also, increased globalization affects labor leaders
as they deal with lawsuits from illegally laid-off employees. Notably, workers under a union may
incur increased expenditures, especially when they file cases with the union for failing to protect
them. Labor law can be reformed due to increased globalization, and policymakers can pass
policies that protect local businesses and employees from cheap external products. It is vital to
acknowledge that policymakers can either formulate new policies or revise the existing ones to
protect employees working in different organizations.