Government Business Relations Essay


Discuss about the Government Business Relations.



Globalization is one of the complex as well as multifaceted phenomenon in both the developed and the developing country. It is called the procedure of intercontinental incorporation as a product of substitute of several different viewpoints, products, thoughts and some other features of traditions in which intercontinental substitute of nationwide and cultural resources takes place in the procedure (De Vos 2012). However, it can be stated that the growth of globalization has brought about an economical and political interdependence of several nations and thus it can be stated that globalization is one of the popular and most discussed terms of the present day. Research works of the eminent professors have found that globalization have shaped the political conditions of both the developed and the developed countries in different ways (Coker 2014).

With the course of time and gradual expansion of interaction between the different parts of the globe, several political changes have taken place like loss in jobs for the working class people in the developed countries. On the other hand, in the developing countries, the most common scene is sweatshop condition of the cheap labor and this is generally due to cheap outsource of jobs. Several reports have found that over the last few years, huge numbers of non-governmental and governmental organizations, international corporations and the multi-corporations have emerged on an international scale and their decisions leave impact to others on a great extent (Findlay et al. 2012). It is required to point out that the UK still has around five million industrial jobs out of an active labor market of over thirty million employees. Condition of the working people in the USA as well is not good, though the USA labor force has been highly shaped by millennia of technological procedure (Furlong 2013).

However, it is required to mention that the populace of urbanized nations have benefitted from globalization through the buy of products and facilities in the developing nations. Apparels produced in the nations like Vietnam and Bangladesh to the smart phones and televisions produced in China have turn out to be gradually more obtainable to the inhabitants of the developed nations. Cost of labor is comparatively cheap in the developing and under developed nations and the developed countries are taking advantages of this part. The developed countries are hiring the labors at low costs and thus the employees are suffering from sweatshop condition. Lane (2013) has shown in his research work that manufacturing costs of goods and services are low in these nations as well as the manufacturing costs. The consumers of the developed countries benefit from an extensive assortment of goods and services at low costs and this pays positive towards their real income. Therefore, it can be stated that the consumers of the developed country have benefited highly than the consumers of the developing and under developed country (Mackinlay 2013).

Mak, Lumbers and Eves (2012) have said that the developed countries as well as suffering and encountering several issues due to globalization. It can be said that intercontinental commerce and globalization has permitted constructing corporations to shift their construction from the developed nations in order to take benefit of the lower labor costs. Therefore, it can be stated that if some types of goods and services are outsourced and the manufacturing have directed to diminish in the service in these divisions. That populace who were beforehand working in the industrialized business has become jobless now and this has affected the situation negatively. This deindustrialization has negatively exaggerated some countries that were more dependent on the manufacturing like Detroit (Mowforth and Munt 2015). Ontario as well has practiced a steep decline in its manufacturing base, as several other countries too faced stable turn down in their manufacturing basis. This has directed to decline in the manufacturing productivity and occupation in the industrialized nations of the globe. Obstfeld (2015) has stated that the losses of manufacturing base, specifically that hold up energetic businesses might have poisonous impact on the nation.

Robertson (2012) has stated that it is not only manufacturing that has been shifted in a foreign country but also some particular facilities have been repositioned to the gradually developing republics. Most importantly, it can be mentioned here that the back office jobs and the call centers have been subcontracted to the developing nations that offers comparatively poorer labor costs. Therefore, it is easily understood that subcontracting of these sorts of amenities and manufacturing have unfortunately directed to decline in service in these segments. Due to this reason, those people who were formerly working in the manufacturing industry became jobless. Apart from that, it can be said that the loss of comparatively low-wages call centers and the back agency occupations increased the rate of unemployment (Rupert and Smith 2016).

Therefore, it is understood that globalization has severely affected the employees of the developing countries and the employees of these nations have been in a sweatshop condition as compared to the developed nations. This incident has led to the loss of service among the inferior profits group as well as the middle income group in the urbanized nations. As many populaces in the subordinate profits group have less schooling and fewer chances for retraining, it might guide to their long-standing employment (Stevenson 2014).

Wright (2016) has explained in details that globalization has played a crucial character in the occurrence of deficiency in many urbanized nations. The people, who live in the inferior salary cluster have experienced long-term redundancy, might slip into poverty and this leave direct impact on the national income of the country. Some recent reports have found that while the rate of poverty has persisted in between twelve percent to fifteen percent in the last ten to twenty years in the United States, the real quantity of people existing below the deficiency line has increased. However, the same trend is observed in the United Kingdom as well and therefore, it can be said easily that globalization might have played a significant role in enlarged unemployment as well as higher number of people living in deficiency in the developed nations (Stevenson 2014).

Mackinlay (2013) in his research paper has stated that one major adverse impact of globalization is nothing but the stagnation of wage in the developed nations. The remunerations of individuals who belong to the lesser salary group and the middle class did not suggestively upsurge in the past few eras, as some of the livelihoods have been progressively under the threat of being out-sourced to the developing countries. Therefore, it can be stated that the availability of low-wage workers in the developing countries might have acted as the hindrance for the rise in wages of the low-income group and the middle class workers in the developed countries. From this part, it is understandable that any probable increase in their ages might encourage a business to relocate its production or service unit to a developing country and at the same time, taking advantage of competitive wages.

Therefore, it can be easily stated that globalization might have contributed towards stagnation of the wage in the urbanized nations, particularly for the middle as well as inferior income group. The research work done by the Joseph Rowntree Foundation exposed the fact that there are more functioning families in the United Kingdom that live in poverty that the non-working ones. This observation effectively point out the one of the most underlying aspect of contemporary globalization. This particle points to that globalization might play a major position in the appearance of the low-wage service and the sluggish earnings in the industrialized nations that once more guide towards increasing the rate of poverty (Mackinlay 2013).

After going through several aspects, it can be seen that both the urbanized and budding nations have been greatly impacted by the globalization. Although it has been advantageous in several customs, there are noteworthy drawbacks as well of unregulated globalization. Talking about most adverse effect of globalization it can be essentially pointed out that globalization movement must be initiated inclusively in order to protect the developing countries’ workers from the exploitation. At the same time, the salary augments as well as service scope must be cheered middle and low course group employees of the developing nations. Mackinlay (2013) has opined in his research paper that the off shoring as well as outsourcing must be reversed or restricted in order to stem the loss of employment and thereby increasing the political popularity of globalization and international trade in the developed nations. Therefore, it can be stated that globalization would be continuously well-liked and sustainable in the long-run only when the benefits of globalization are enjoyed by the citizens in both of the developed and the developing nations (Stevenson 2014).

Critics like Lane (2013) have opined that the growth of international trade is gradually exacerbating all the income inequalities, both between and within the mechanized and non-industrialized nations. Apart from that, it can be stated that the protectionist policies in the industrialized nations most of the time prevent many producers in the Third World from accessing export markets.


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