In international business, organizations indulge in business in the global markets and in order to succeed they need to adopt different strategies. In this context it becomes essential to not only be aware of the relevant monetary aspects and cultural and political circumstances, but also the characteristics of the labor force and how it influences the international businesses.
The quality of labor is an important aspect to be considered in this regard. An analysis of the labor force must be made before business contracts and expansion plans are finalized to ascertain that the right skills are in hand to conduct the business profitably. The quality of labor is influenced by factors such as proficiency, experience and education. The price of labor is determined by the supply, demand, existence of labor unions and government regulations and rules.
The quantity of labor is influenced by the same factors that influence the quality of labor and traits such as knowledge, managerial skills, creativity, capability and the ability and willingness to learn and adapt to a changed environment is required to be considered before candidates are hired. Mobility of labor implies both occupational mobility and geographic mobility. Workers should be able to adapt to changes across the different sets of jobs and across changes in the physical environment. Labor mobility enables workers to enjoy a better economic status when their skills are not matched by available opportunities in the place where they stay.
Traditional societies and minorities are considered to be an important source to be considered in this regard. These are the people who get their identity from their national origin, religion or race in living amongst people of another majority race or religion. There is advantage in employing such minorities in a foreign country in view of their immediate availability. However there is a disadvantage with this group since they are prone to be discriminated against in being viewed as belonging to a lower class as compared to the majority. In today’s globalized world it has become essential for people to move across borders since international businesses are heavily dependent on the international labor force and its ability to easily move around the world (Brunson McKinley, 2004).
During the last twenty five years there has been a steep increase in the number of non traditional work procedures. There has been an increase in the proportion of the labor force that is self employed or working in shifts either part time or full time. The number of people that hold multiple jobs and casual or temporary jobs has also increased. Such arrangements of non traditional labor practices in the labor markets have become common across most developed and developing economies of the world.
There has been a considerable shift in jobs from the manufacturing sector to the services sector. Many nations have started to reduce social and employment benefits and some companies have begun to reduce health, pension and social insurance facilities. The labor market primarily depends on the inflow of FDI and restrictions on capital mobility in any given country (Aleck Ostry, 2009). The intensity of labor use has increased in view of the increased domestic spending in developing countries and the presence of trade unions does not appear to make too much of a difference in the working conditions of the labor force.
Although globalization has contributed to some extent to the decline in the influence of trade unions, but it is believed by economists that it is primarily a result of the decline in unionization primarily amongst workers who are less educated. It is in this context that governments are now grappling to alter policies in order to make stronger union positions towards globalization.
References
Aleck Ostry, Impact of Globalization on Labour Markets. Web.
Brunson McKinley, Viewpoints: Should borders be open. 2004.