In this article, the term is used in both negative and positive sense. Globalization is negative here for the French economy which is suffering from recession and unemployment rate of 10%. In this scenario, one of the largest French automobile companies – Renault have built a plant in Tangiers, Morocco to hire cheaper labour in comparison to France. This is shifting French jobs to Moroccan nationals and further aiding to the high unemployment rates in the country. The Eurosceptic conservative Presidential candidate said about this case “When you see a public company, with the state as a shareholder and represented on its board, and it has approved this off-shoring”, displaying the displeasure of Renault and other companies which seek employees offshore for higher profit margins. The former Prime Minister Dominique de Villepin also shared his displeasure, he said, “This low cost race is one we cannot win; we must change the French economy and the direction of French industrialization”. Globalization has also been mentioned in a positive sense, with CEO of Renault Carlos Ghosn assuring that opening of Tangiers factory will be beneficial for Moroccan employees, Renault and all future customers without hurting France or its economy. This move is merely for the sake of seeking a cheaper labour market, for helping Renault grow as a company. In case of Lodgy turning out to be as successful as Logan, stakeholders and industry will applaud this move to open offshore factory (Crumley).
Conclusion
Globalization creates an environment within which job movement is made simpler. With the acceleration of globalization, trend of offshoring is going to further intensify. Exporting of jobs from developed countries to countries where labour costs are comparatively cheaper, helps companies to increase their profits. In some countries, especially those who are suffering from an economic downturn offshoring generate controversy as white-collar jobs are shifted overseas. Companies have no other option but to lower their labour costs, and inability to do this in developed countries makes them move to countries with cheaper job market. The only way for companies who offshore jobs from their home nation is, ensure they maintain jobs in the home nation and increase their taxable income for economic growth.
Works Cited
Crumley, B. Renault’s Morocco Factory: When Globalization and Politics Collide. http://world.time.com/2012/02/09/renaults-morocco-factory-when-globalization-and-politics-collide/. Time.com. 9 Feb 2012. Web. 26 Jan 2014
