Business Case

A perennial challenge facing all of the world's countries, regardless of their level of economic development, is achieving financial stability, economic growth, and higher living standards. Firstly, Structural Unemployment can be defined as "unemployment that comes from there being an absence of demand for the workers that are available". Structural unemployment is often due to technological change; for example, if the introductions of DVD players cause the sales of VCRs to plummet, many of the people who manufacture VCRs will suddenly be out of work. The first link between globalization and unemployment is the rise of competition at all levels; to illustrate, in the past domestic producers were often shielded from international competition by time and distance. Another link between globalization and unemployment is downward price pressure. Low Cost Countries, such as Vietnam, India, and China, can produce goods for pennies on the US dollar. Without high overheads, pension, or union wages to maintain, thus they can offer the same products for less. This however forces US manufacturers and banking service industries to eat cost increases rather than raising prices, however leading them to cut costs in other areas such as employment. Along with greater connectivity to other countries, globalization also provides consumers with increased choice for goods and services. Local establishments that may have once enjoyed a monopoly can be devastated as consumers move to alternative providers from other countries. As a result, businesses close and unemployment increases. An additional contributing link between globalization and unemployment is resource scarcity. Simply put, there are not enough of the core goods in this world to go around. Water, coal, gas, oil, and many other key resources are in limited supply. Racing to secure a solid supply drives up prices and costs, leading to less money for paying workers. Hence though government behavior and individual decisions are a factor, there is no doubt that globalization is also contributing to the current unemployment rate; however, the only way to grow and thrive is to adapt, innovate, and stay resilient in the face of continual global challenges to your industry, your career, and your personal aspirations.