Globalization is a term that refers to the process by which the economic, social-cultural and institutional dynamics undergo spontaneous integration among diverse states of the world. Whereas labor, refers to the human effort which result in the production of goods and services in an economy. The primary essence of this paper is to examine the analytical framework concerning the interactions between globalization and its effects in China, based on the current events perspective in the world today.
Globalization can be viewed from the perspective of being the impetus behind the trends in development in the world today, characterized by the free movement and optimized distribution, of capital, expertise, know-how, human resource and service delivery in the global context. It is the predestined result of the development of prolific forces and advancement in science and technology, particularly, in the examination of the revolution so far witnessed in labor and its attachment to globalization. In addition, globalization as well implies to the connection of people from diverse parts of the world (David, 16). Thus, the patterns of labor in relation to globalization, range from the advancements witnessed in close analysis of the labor force of the effects globalization poses to the Chinese populace. Thus the Chinese labor force is exemplified by liberalization, low labor costs, diversified borders, international participation, free trade employment of heavy machinery to substitute human workers and competitions in the world of labor offered in the deliberation of the products produced. All these dynamics have culminated into a situation of diversified implications to the labor market in China.
As a point of departure, globalization in China has affected the labor force in the magnitude of the labor force that has risen almost four times compared to two decades ago. In distinguishing these facts, it is measured through economic channels that include imports of final goods from outside the Chinese markets, production of intermediates in large quantities, and the immigrations of a diverse populace from other parts of the world. To explore this in detail, globalization through infrastructure enhancement and information communication channels that are favorable, has created an urge from aggressive immigrants from other nations who are interested in taking advantage of the on-going industrialization in China (Sethi, 32). This massive movement has led to population pressure and thus, the labor force has increased significantly in the Chinese markets. Secondly, the determination of a large pool of labor force can be witnessed by the huge imports from outside China, which gives an outward implication that the consumption levels in China are high concerning the fields, in which the imports are utilized to facilitate production. On the part of intermediate trade, the reduction in trade barriers has facilitated cross border interactions in businesses because of the ease with which firms are able to transfer their products less costly locations. Owing to these factors, it is therefore crucial to conclude that the globalization of labor has resulted in the quadrupling nature of the Chinese labor force.
Secondly, the positive attributes encountered owing to the globalization of labor is that, the labor compensation in China’s advanced economy is insurmountably growing, resulting from the enhanced productivity and output (Sethi, 36). Over the last few years labor compensation in terms of wages and other additional worker benefits have recorded a robust augmentation up to a level of 60 percent. This is accredited to the integration of workers from the flourishing market of the budding countries into the global labor force of China.The export opportunities have gone up while productivity and output have benefitted from lower input costs and the efficiency in production performance.
China’s positive approach towards globalization has led to enhancement in life style and increased employment opportunity for the people of China (Sethi, 34). For instance the majority of the Chinese people who form an integral part of the labor force are the prime beneficiaries. Thus an outspoken representation of the rising patterns towards stability in China.The living standards of all workers have drastically been improved as a result of labor globalization.
Despite the positive patterns experienced, as a result of globalization of labor, there are numerous challenges that are attached to this matter. First, China has over the past two decades witnessed intensified and rampant application of technological advancement in the fields of industry. The fact that Chinese industries apply the use of machine-powered systems to run operations in place of human labor, numerous people have been rendered jobless in this regard.This is because, the demand of unskilled labor has drastically dropped over the years in preference of the quality output that can be achieved through utilization of these machinery (David, 12). This has created a state of panic of the labor force, given that a state of job insecurity has ensued. This has culminated in a situation where the Chinese labor force has diversified to part-time, overtime and private jobs for conformity to the far reaching labor globalization related implications.
Swift technological change in china, has had the most prevalent pessimistic impact on labor's income allocation, epitomized by labor globalization (Donald, 34). China has implemented transformations to lessen the price outlay of labor to commerce, by lowering the levy impediment. This was due to the anticipated ambition of motivating local firms to take advantage and intensify production. Contrary to this expectation, the difference between the payroll cost to a firm and the net pay of workers and the improved labor market flexibility have been affected adversely.
Labor globalization in China has resulted to mercerisation of social security. This refers to the increment in the levels of economic opportunities and the economic security of the Chinese labor force at the expense of their interests’ protection (David, 12). The mercerisation of social security in China has had its implications in employment affairs as well. This is because when employee wellbeing, safety from the state deteriorates and the intensity of employee dependence on the employer amplifies, the bargaining authority of employees is compromised as well as the position of employers in the employment dealings.
In conclusion, globalization and its effect from a current world event perspective of labor and globalization in China, encompasses diverse viewpoints among them, a quantitative increase of the labor force, advancement in labor compensation, lifestyle improvement, low price outlay of labor to commerce, massive unemployment and mercerisation of social security. Thus, it is fundamental to note that globalization is an essential force nourishing world growth, but policymakers should ensure that all individuals gain by reinforcement of the accessibility to education, training and related practices, adopting sufficient social protection mechanisms, and improving the performance of labor bazaars. Steps to trim down tariff wages and guarantee that unemployment and profit replacement rates do not dissuade workers from seeking jobs can assist in protecting labor income in view of the existing strains of globalization.
Work Cited
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Norris, Donald F. Current Issues and Trends in E-Government Research. Hershey, Pa: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA, 2007. Internet resource.
Sethi, S P. Globalization and Self-Regulation: The Crucial Role That Corporate Codes of Conduct Play in Global Business. Basingstoke: Palgrave Macmillan, 2011. Internet resource.
