Globalization has had a number of effects on employment rates worldwide. It has increased competition among businesses and the demand for skilled labor. The growth of the service industry has also been attributed to globalization.
For example, many US firms have moved their production operations overseas. Using these techniques, they are able to offer their products and services at lower prices. This has helped the U.S. achieve a competitive edge over its international competitors.
However, the rate of globalization can lead to disruption of markets. It is important to understand the relative costs and benefits. These insights can help offset any negatives.
Among the major positive effects of globalization is the opening of new markets. This is a result of technological advances, such as the internet. Having the ability to reach consumers across the globe has led to the development of new industries. In some cases, this has also led to new jobs.
Similarly, the advancement of communications technology has enabled people to settle in distant places. This, in turn, has increased the demand for quality goods and services.
Despite the positive benefits, globalization can also have a negative impact on employment. Specifically, it has reduced wages for lower-skilled workers.
Another way globalization has affected the employment market is through trade. Specifically, the growth of trade has had a negative effect on the real wage rates of workers in developing countries.
Some studies suggest that the cost of international trade was $1,800 per worker in 2011. While this may not seem like a lot, it is a large sum for a working class family.