Among the most discussed issue on the welfare of different states are the globalization effects on trade and employment policies. The issue is opposed to the work viewpoint and the creation of the social guidelines of incentives to increase market labor participation. Measuring the few intricate transformations employs a context that is analytical and includes pointing to highlighting the institutions that have welfare capability, therefore, creating the ability to resist any form of pressure from external. This comparative perspective shows that the impact caused by the growth of the flow of capital to the policies which are related to workfare contracts rather than being a unilateral phenomenon. The globalization effects on the systems of trade and employment in the democracies of Western is among the largely discussed political issue, which is continuous in the field of social sciences. The theory of regulationist points out that the intensified globalization has led to the stimulation of labor supplies and the trade activities through raising the levels of incentives and the conditions of welfare benefits whereby trade is valued, and the unemployed have the obligation of working to retain and receive their benefit entitlements. This paper is meant to illuminate the globalization impacts on employment and policies concerning the economic, interdependency, and foreign investment areas.
Globalization is referred to as a global process that involves political integration, cultural as well as the economic integration that compresses the world into a small village breaking down all the state borders. Globalization has a role in the growth of countries that are developing. It has benefits in the lives of all individuals stimulating the economic processes- based, the technical progress, politically- influenced advances, and other opportunities for accessing markets from the already developed markets. Maurer & Degain (2012) notes that this phenomenon has got positive effects, although there exist some colossal impacts and, most specifically, in developing countries. Globalization supports the countries which are developing to increase their economic advancements allowing them to solve poverty problems as well as offering job opportunities in their countries. It is noted that countries willing to create mostly rely on those countries that are already developed for raw materials as well as for the market for their industrial goods; therefore, there must be a mutual interest for both sides to dive. In the context of the advantages of globalization, it can benefit the fewer rich people and also create a gap in the majority of poor people who live in misery, therefore, widening the gap. Savrul & Insecara (2015 ) claim that it is seen as a loser and winners’ game, and therefore, those who are rich can succeed in benefits privatization while the poor faces suffering, making them have no way to thrive.
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Costinot & Rodríguez-Clare (2014 ) notes that among the significant advantage of globalization is that goods and services are transported more naturally and faster, therefore, resulting to increase in free trade between the borders. Further, globalization has helped in reducing war possibilities due to the interdependence of countries. Despite globalization having a lot of advantages to the developing countries, it is also noted that it has negative impacts on creating poor countries. Globalization increases the rich and poor inequality; therefore, the claim that there is universality in the benefits derived from globalization. This is to mean that the richer continues to get rich with the poorer continuing to get poor. Further, Maurer & Degain (2012 ) notes that foreign companies come in a country to take their advantages of low wages and pollution based on the brain drain of the region. Globalization acts as a driving force to economic security and prosperity. This is because it functions in the evolution of countries based on the success of economic activities leading to rampant growth in the GDP rate and the rate of investments.
Economic globalization impacts the availability of jobs in an economy, therefore, affecting the economic variables, which are macros such as the employment rate and the ratio of population. This is complex because the impacts of globalization can be dissimilar for both the micro and the macro levels of economic occurring based on short- term and long- term basis. Globalization also affects the structure of the job and, most specifically, the distribution of jobs across different economic activities. Puga & Trefler (2014 ) notes economic job might disappear while jobs whose links are from other sources can be as a result of transformed competitive benefits and the specialization patterns. This is to means that the transformation of structural jobs is a result of globalization as well as other technological progress. It should also be noted that job composition involves a mixture of both the skilled and the unskilled jobs in the market are as well likely to get effects of globalization. The countries which are developed have low- skilled workers who have experienced most of the impact as a result of the stagnating revenues as well as the increased joblessness faced from countries that are developing as well as the technological progress. The workforce of countries undergoing development becomes more qualified and increasingly engaging as a result of sophistication and activities handled. Already developed countries with their skilled workers encounter competition from other developing countries.
Walter (2017 ) notes that globalization has led to greater interconnectedness among markets globally as well as more awareness in the opportunities of business and communication. Investors get new investment opportunities as they have the ability to know the market. Profit realization opportunities are easily reached due to the globalization and the improvement of technology in communication. A new market from other countries can access goods available in one country due to globalization. It is also noted that economy unification is attained for countries that have positive public relations through increased trade activities and investment. Näätänen (2015 ) notes that among the realized developments include the integration, both the national and global economies for the last century. This is a result of globalization materializing the growth of intercountry trade. The current global economic system has resulted in the countries exchanging both the final and the intermediate products. This boosts the economic interaction network that covers the whole world.
Potrafke (2013 ) notes that there has been a radical alteration in the economy as a result of globalization, which results in market economy generalization, implantation of technical systems as well as an increase in the production process. Nations have proved that they cannot satisfy themselves in the global economy, and this has resulted in the introduction of trade at different levels where they can sell their produce, obtaining what they need. According to Hoffmann & Kumar (2013), all countries have got different levels of production in various sectors, and therefore, this has reinforced the theory of conventional economy making a trade to promote the efficiency of the economy through which the production of globalization contributes to the trade. The increased and expanded globalization process has resulted in a number of factors such as advancements in the liberalization of the world trade as well as the capital movements, the progress encountered in technology leading to a decrease in communication and transport costs. The growth of emerging and market economies and most specifically in great economies reflects the acceleration of the globalization process ( Perraton, 2019 ). The increased activities of the flow of international trade in the emerging and the developing countries reflects the phenomenon to a global level.
Although globalization might deem not to be new, it has expanded the economic outcomes domains boosting the world economies' interdependence as well as the “cross- border trade activities scale.” However, the reflection of this development on the economy also goes to the employment levels. Trade and the growth of employment have also played a part in the globalization process. The field of economic cooperation has highly improved many sectors creating job opportunities for many. Interdependence has also been enhanced, making alterations from regions that are unworthy to something that looked in a very different way by other countries.
References
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