Consequences of Internationalisation of Labour

The consequences of internationalisation of labour

Introduction

The internationalization of labour markets highlights diverse concepts and fundamentals. Globalisation of the economy and internationalisation of labours are a subject matter for multinational corporations. In the recent past, scholars and activists have collectively presented a wide and extensive literature on the relationship. The need of the time is to align with the social, cultural, organisational and fiscal framework in the light of global services of the organisation. HRM plays a functional role in bridging the gap between labour movements and economic activities in the organisation. Labour force of any organisation facilitates all the functions of labour movements to enter in global workspace. System processes, environmental issues, labour public policies and cultural perspectives are adhesive forces that have an impact on globalised economies. A comprehensive understanding on the advent of multinational corporations across borders and its impact on labour standards is requisite action. The effect of globalisation scattered along the state, labour and economy. Without enhancing the economic performance, internationalisation of labour is not possible. Labour standards and trade liberalisation are core functions to understand the effect of globalisation. The economic and societal forces facilitate to maintain healthy labour standards worldwide. The flow of labours will also create substantial impact on employment, sales force, profitability and performance of the organisation. Supporters and critics for this subject matter draw attention towards standardisation of labour in the global climate.

Discussion

Economic analysis and Labour movements

Multinational corporations have momentously changed the economic framework in last two decades, with the emergence of labour forces in China and India (Coe, 2007). There is an increasing trend observed in the foreign direct investment and trade base due to market expansion and cheap labour force in these emerging markets. Moreover, the technological boom in the industry has channelled labours to move and process intermediate inputs in the production stage. China and India are key players in this regard. Management science mentions this development as off-shoring. This labour diaspora develops a scope for non-tradable items that were undermined before. Service off-shoring is a good example of moving call centre activities from United States to India. This was only possible before with professional and highly skilled workers. This is one of the many aspects of optimistic results for the globalised economies and internationalisation of labour force. It is necessary to analyse whether it represents adversities to grow or increase trade activities. This section will uncover issues and challenges that human resource management encounter for all global businesses of multinational corporations.

Impact on business activities

Blinder (2007) emphasises that this debate is not about discussing comparative advantage or assumptions that such countries will get some gains from trade. His point of discussion is about BRIC (Brazil, Russia, India and China) nations and their proportions on whether globalisation is beneficial or decisive in the long run. Language barriers and cultural distortions create hindrance towards the process of globalisation. Relative wages, technology facilitation, job security of workers and employment distribution in sectors are ...