Advantages And Disadvantages Of Opening Labor Markets On A Global Essay

Advantages And Disadvantages Of Opening Labor Markets On A Global Scale - Essay Example The main characteristic of globalization is enhanced free trade between countries, the easier passage of the capital between country's borders, an enormous increase in foreign direct investment. This increases efficiency, and this is one benefit that is readily identifiable. As a result, many countries in with open labor markets, growth for both small firms and multinational companies, can now access new markets across the world. Due to this effect in the economy, there has been increased transport and communication between nations and continents. When economy sells the same product worldwide due to the efficiency, an individual company can Purchase its raw materials in bulk, in the long run, saving the firm thousands of dollars per year (Loayza & Serven, 2010 p., 123). Due to these illustrations, it is quickly established that firms in the opened market tend to be more competitive and efficient. Since open labor markets assist in the maintenance costs down for companies. For instanc e, companies have been able to get rid of surplus workers. This can assist these companies to avoid being bankrupt and in the long run protect jobs. Arguably with globalization, it is becoming more and more essential for companies to remain competitive within any global economy. This is achievable through open labor market strategies (Dao & Dao, 2008 p., 151). Opening labor market benefits for economies and consumers. Consumers are able to enjoy a greater choice of foreign goods and services since they are offered for them to buy.