Global Economy

1369 Words3 Pages
bulb-icon

Recommended: Chinese economic development

Global Economy’s Impact on Labor The global economy has had great impact on the labor force, affecting each country in its own way whether it deals with outsourcing and offshoring or unemployment. The term global economy means integrating the world economy through trade, production, and distribution while consuming goods and services. Globalization has progressively integrated its way into all countries and the United States has seen that on the rise with diverse ethnic, economic, and religious groups that work together in everyday tasks. While the U.S. has taken advantage of their leadership role in the global economy, it is continuing to face global competition. United States has had its position in the world economy threatened by the BRIC – Brazil, Russia, India, and China, because they can provide labor for cheaper than what the United States can domestically. China’s economic power is on the rise, having more graduate and PHD’s, highly innovative, and taking a strong standpoint on reshaping the future of the global economy. The United States plays a strong role in the global economy is now threatened by the expansion in competition for jobs and investment by China, whose nation is on the rise. The BRIC nations have developed quickly and effectively, having a great impact on the global economy. The United States has been quick to outsource and offshore millions of domestic jobs that can be done at a cheaper rate to countries such as India and China. The labor in both these countries will cost a fraction of what it costs to produce and assemble in the United States. Chinas cheap labor has become a prominent advantage to the nation by not only increasing the countries employment rate but also providing more to their economic... ... middle of paper ... ...rlier or later is yet to be determined. The positive global effects of China crossing the Lewis Turning Point are plentiful; increased output commodity, raising domestic employment, more regional economies join China’s trade chain. Works Cited 1. Das, Mitali, and Papa N'Diaye. "The End of Cheap Labor." IMF. N.p., n.d. Web. 14 Nov. 2013. . 2. "World Development Indicators-Google Public Data Explorer." World Development Indicators-Google Public Data Explorer. N.p., n.d. Web. 18 Nov. 2013. . 3. A.C.S.. "Growth and China: China approaching the turning point." The Economist. The Economist Newspaper, n.d. Web. 20 Nov. 2013. .

Show More
Related

  • Paul Farmer, Partners in Health and Tuberculosis

    1535 Words  | 4 Pages

    Indicators. United Nations, 7 July 2011. Web. 16 Nov. 2011. This data sheet shows the

    Read More

  • Analysis Of The Us-China Trade

    1570 Words  | 4 Pages

    The current trade imbalance is caused in large part by intrinsic features of China's labor market and consumer base. The vast majority of China's 1.3 billion people still live in rural areas. China has, by some estimates, a surplus rural labor force of 120 million people, many of whom migrate to industrial centers to look for factory work, and drive down wages. As long as wages are low, the United States will continue to gobble up products made in China, while Chinese consumers will prefer to buy cheaper, homespun alternatives to American products. The rise in trade deficit with China has come at a cost to jobs in the United States, accordin...

    Read More

  • Foreign Direct Investment in China

    1419 Words  | 3 Pages

    China has come a very long way in the past 25 years. China has grown at nearly 10 percent a year over the past 20 years. China's explosion on to the world investment, production and trade scene is the product of its size, growth and openness. This is leading to tremendous changes in the global economy.

    Read More

  • Chinese Economic Reform: The Late 1970's to Present

    3283 Words  | 7 Pages

    Coates, B., Horton, D., & McNamee, L. (2014, January 1). CHINA: PROSPECTS FOR EXPORT-DRIVEN GROWTH. Economic Roundup Issue 4. Department of the Treasury (Australia).

    Read More

  • The Positive And Negative Impacts Of Globalization In China

    1026 Words  | 3 Pages

    However, the impact it has made on China can be considered to be great as it brought China under the limelight in the global economy. Globalization has had many positive and negative ramifications on the Chinese economy. In the short run, it may be so that the negative impacts outweigh the positive impacts, but that is easily debatable. This is because all the negative impacts of globalization can be corrected with economic policies that can be efficiently undertaken by the Chinese government. In this manner, China in overall will be able to enjoy all the benefits of globalization and contribute more to the rest of the world as it continues to grow economically and socially. In today’s world, globalization is an important part of the development and prosperity of each nation and China too should be able to reap from its benefits. Today, as China proudly holds a place in the global economy as the world’s second largest economy and most populated country in the world, it can be said

    Read More

  • Compare and Contrast: China and The USA

    926 Words  | 2 Pages

    ...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)

    Read More

  • Foreign Trade with China

    2820 Words  | 6 Pages

    From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.

    Read More

  • Service based economy in the U.S.

    354 Words  | 1 Pages

    We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.

    Read More

  • Impact of Global Competition on Trade Unions

    1559 Words  | 4 Pages

    The development of free-market economics has, since the 18th century, resulted in the spread of a set of ideas, creeds and practices all over the developed and much of the developing world. Today, the globalisation of trade, capital, technology and innovation has accelerated competitive conditions for businesses all over the world. Globalisation may be defined as the opening of markets to the forces of neoliberalism and capitalism; it is characterised by the free movement of people, talent, skills, capital (intellectual, social and economic) across international borders. All kinds of barriers have either been swept away, diffused or made obsolete by the forces of globalisation: trade barriers, subsidies, geographical boundaries, linguistic and cultural differences. Technological advancements have pulled the world closer and, in the process, affected how labour relations and worker/employer relations operate and develop. The multinational corporation as well as the public sector alike are affected by global competition.

    Read More

  • Climate Change and The Rise in Sea Level

    2057 Words  | 5 Pages

    Entering the 21st. Century – World Development Report 1999/2000. World Bank 2000. Oxford University Press. New York, NY 2000.

    Read More

  • The World Is Flat by Thomas Friedman

    916 Words  | 2 Pages

    The book, The World is Flat, by Thomas Friedman draws attention to some very good points concerning globalization and the world economy today. Friedman emphasizes the status of America today in relation to the other countries of the world. As I looked at the things in which he warned about or highlighted, I realized the importance of this issue. He talks about a few aspects in which need to be kept competitive in order for America to retain their current standing in the world market.

    Read More

  • China: A New World Power

    1136 Words  | 3 Pages

    Global Research. Global Research. 7 Mar 2012. Web. The Web.

    Read More

  • The Role of Traditional Birth Attendants in the Reduction of Maternal Mortality

    2591 Words  | 6 Pages

    United Nations, (2013) the millennium development goals report 2013 [ONLINE] United Nations. Available at: http://www.un.org/en/development/desa/publications/mdgs-report-2013.html [Accessed on 26 December 2013]

    Read More

  • The Impact Of Human Resources Management Globally

    1137 Words  | 3 Pages

    Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.

    Read More

  • The Global Macroeconomic Environment

    1224 Words  | 3 Pages

    The macroeconomic environment is a dynamic environment, which could not remain unchanged (Gajewsky 2015). There are many factors influence the global macroeconomic environment, such as interest rate, exchange rate, GDP，aggregate demand, monetary policy and other macroeconomic variable (Oxelheim and Wihlborg 2008). These factors are closely associated with commodity price.

    Read More

More about Global Economy

Open Document