Globalization's Influence on Work and Employment: A Report

This report examines the multifaceted impact of globalization on work and employment, with a specific focus on Hong Kong and India. It begins by defining globalization, its scope, and various approaches, including the McDonaldization approach. The study explores how globalization influences work and employment, highlighting both positive and negative effects. Positive impacts include increased trade, foreign direct investment, poverty reduction, and improved wages and working conditions. Negative impacts include increased competition, potential threats to cultural diversity, and unequal distribution of benefits. The report analyzes the impact on employment rates, wage inequalities, and the creation of a global labor market. The analysis considers the economic landscapes of Hong Kong and India, exploring how these regions have been affected by globalization's trends. The conclusion summarizes the key findings, emphasizing the complex and evolving nature of globalization's impact on the global economy and its workforce.

Running head- Impact of Globalization on Work and Employment
Impact of Globalization on Work and Employment

1
Impact of Globalization on Work and Employment
Introduction
This paper has been designed to study the impact of globalization on work and employment in
regard to Hong Kong and India. Globalization is defined as the borderless world in which an
individual can easily move from one corner to another corner of the world in the search of
employment. Due to globalization, an organization can operate from anywhere in the world.
Globalization has improved or enhanced the scope of businesses and hence there are a lot of
opportunities available for the businesses in the market (Beck, 2018). Thus, it can be said that
globalization has significantly helped the business world to grow and develop over a period of
time. Due to globalization, employment opportunities have also been improved significantly. So,
globalization has not only helped the business to grow and develop but also has helped the
people to get employed. Globalization has also created challenges or issues for the business. Due
to globalization, the level of competition has increased significantly. It has mainly hurt the small
and medium local business because large organizations have dominated the market.
Therefore, it is important to analyze the impact of globalization on work and employment. In
order to complete this paper, Hong Kong and India have been selected. McDonaldization as an
approach to globalization has been selected to analyze the impact on work and employment.
Globalization Meaning and Scope
Globalization has become one of the most frequently used terms, particularly in economics and
politics. It can be defined as the process of integrating the whole economy of the world and make
the world borderless (Steger, 2017). The main goal of globalization is to ensure socio-economic
integration as well as the growth and development of the whole humankind of the world through

2
Impact of Globalization on Work and Employment
a free flow of knowledge, information, goods, and services including human across all the
physical borders or boundaries. It is active as well as the conscious process of expanding trade
and businesses all over the globe. It helps in expanding economic linkages and cross-border
facilities. It is done in order to ensure an active and effective integration of economic activities as
well as the interest of the individuals who are residing all over the globe. The main objective of
globalization is to make the world inter-dependent, inter-related, as well as developed. It is a
concept which helps in securing real political, cultural, as well as the social economic
transformation of the world into a real global community (Pieterse, 2019). It is also considered
that globalization has become a necessary means in order to secure the sustainable development
of all the people all over the globe. The desire of moving from national to the global sphere of
political as well as economic activities is represented by globalization. Thus, globalization is
both a structure of economic linkages as well as cross border facilities and an active process of
organizational expansion all over the globe.
Globalization has created several opportunities for business all over the globe. Now, an
organization can operate in any country in the world. So, the organization can have a relatively
larger customer base. Rapid technological advancement has also been possible due to
globalization. Technological advancement has supported businesses to grow and develop rapidly.
Globalization has also created more demand for products and services. Rate of employment has
been increased due to globalization (Vivarelli, 2018). It has not only increased the rate of
globalization but also has ensured the standard working environment. Labor laws of various
countries including Hong Kong and India have been improved. Wage rate has also been
improved. Thus, it can be said that globalization has produced a significant positive impact on
the work and employment although there are some challenges of globalization which should be

3
Impact of Globalization on Work and Employment
dealt with effective strategies in order to enhance the positive impact of globalization on work
and employment.
Approaches to globalization
There are several approaches to globalization such as internationalist, globalist,
transformationalist and McDonaldization which define how globalization has taken place. The
process of globalization is defined by these approaches and hence it is easy to understand the
process and concept of globalization using these approaches. Here, McDonaldization approach
has been used to describe and understand the concept of globalization. The McDonaldization
approach of globalization particularly states how society adopts the characteristics of other
societies (Ritzer, 2018). It particularly states the adoption of the characteristics of fast food
restaurant by a society. The process of McDonaldization approach defines the principles of the
fast food industry which are dominating almost every sector of the society in the world. For
example, there was no trend for fast food in India initially. There was no restaurant for fast food
in India. But with the passage of time, fast food restaurants started targeting India to enter
considering the potential of the Indian market (Dustin, 2016). Hence, fast food restaurants from
different countries including China stepped into the Indian market. It created employment
opportunities in India. Thus, it can be said that McDonaldization is an effective approach with
the help of which the process of globalization can be understood easily.
Globalization has a significant impact on work and employment. There is both positive as well as
the negative impact of globalization on work and employment. Therefore, it is important to
analyze and understand the impact of globalization on work and employment.

4
Impact of Globalization on Work and Employment
Impact of globalization on work and employment
Globalization affects work and employment significantly. Due to globalization, several works
and employment opportunities have created. Millions of people have been employed. The
employment rate has been increased due to globalization at the global level. Globalization has
also improved wages, the standard of living, cost of living, etc. It has brought standard working
policy which has strengthened the power of workers (Nica et al., 2016). But there is some
negative impact of globalization on work and employment. First of all, the positive impact of
globalization will be discussed here.
Globalization has boosted trade volume on the global level. Trade is one of the significant parts
of economic growth. If the trade volume of a country is higher, the rate of economic growth of
that country will also be higher. Increase in the trade volume also increases employment
opportunity within the country. More and more people from that country will be employed. As
the rate of employment will increase, the per capita income of the people will also increase. It
will enhance their standard of living.
Globalization has also significantly contributed to poverty eradication. Poverty is one of the
major causes of backwardness and underdevelopment. Globalization has improved trade and has
a significant impact on poverty. Poverty is directly related to trading practices. If the trade
volume of any country is low, there will be high poverty in that country. On the other hand, if the
trade volume of the country is high, there will be low poverty in that country.
Globalization has also boosted foreign direct investment which is very important for the growth
and development of the country. Foreign direct investment creates employment opportunities
within the country (Tejani and Milberg, 2016). Several organizations have entered into the

5
Impact of Globalization on Work and Employment
market of India due to globalization. India has become one of the most attractive markets in the
world. Therefore, most of the organizations want to enter into the market of India. Globalization
has also supported the organizations to enter into the market of India. It has not only helped the
foreign organizations but also India. Thus, India has attracted a handsome amount of money in
the form of foreign direct investment within the country. It has helped the country to build and
improve infrastructure facilities. Similarly, Hong Kong has also attracted foreign direct
investment from different countries. Hong Kong has particularly attracted foreign direct
investment in the tourism sector. However, other sectors such as manufacturing and service
sectors have also attracted foreign direct investment. Globalization has accelerated the growth
rate of these two countries significantly.
Unemployment and wages inequalities have also been reduced by globalization on a large scale.
Unemployment is a major concern of every country and hence every country develops initiatives
to reduce the rate of unemployment (Reader, 2017). As it has been discussed that globalization
has created tremendous employment opportunities thus the Global unemployment rate has been
dropped significantly. Apart from this, the issue of wages inequalities has also been considered
and initiatives have been taken to reduce the inequalities in wages. Globalization has brought a
standard wage rate for the labors in order to improve their living standard. Underdeveloped
countries, as well as developing countries, provide low wages to the labor which is not sufficient
for living. Globalization introduced the standard wage rate for the labors so that they can
improve their living standard.
Globalization has not only improved the wage rate of the labor in developing as well as
underdeveloped countries but it has also improved the working policies, rules and regulations. It
is very important to provide a healthy and hygienic working environment. Globalization has

6
Impact of Globalization on Work and Employment
described how the working environment can be improved to provide better facilities to the
employees. It is informed of some necessary elements which should be ensured at the
workplaces such as basic amenities, safety from fire, first aid facilities, drinking water facilities,
sanitation, toilet facilities, etc.
Globalization has created a global labor market. After the introduction of globalization, an
individual from any country can move anywhere in the world in search of a job. So, it can be
said that there is more opportunity for employment nowadays due to globalization (Helpman,
2016). There are several other positive impacts of globalization on work and employment but it
is also important to analyze the negative impact of globalization on work and employment.
Globalization is the effort of the richest countries in the world. Thus, it mostly benefits the
richest countries instead of benefiting the developing or underdeveloped countries. It
significantly operates in the favor or in the interests of the developed countries. So, with the help
of globalization, developed countries continue to dominate the world trade at the expense of
underdeveloped as well as developing countries. Globalization creates employment opportunities
significantly but most of the employment opportunities are entertained by the workforce of
developed countries (Farzanegan and Hassan, 2017). It is also not necessary that the wealth
created by the investment or foreign direct investment will benefit the local community. Only a
few percentages of the people of the local community enjoy the employment opportunities
created by globalization. It has also been considered that globalization is a threat to the cultural
diversity of the world. Wage rates are also less influenced by globalization.

7
Impact of Globalization on Work and Employment
Conclusion
It can be concluded that globalization is one of the significant concepts which has changed the
global scenario. It has changed the business world or the corporate world. Globalization has a
significant impact on almost every aspect of an economy but it has significantly affected work
and employment. Globalization has improved employment rate at the global level. Trade has
been improved by globalization which has reduced the unemployment rate and hence poverty
ratio has been reduced. It has also improved the working culture and environment. But there are
some disadvantages of globalization as well. India and Hong Kong have enjoyed the benefits of
globalization on a large extent. It mostly favors developed countries and employment
opportunities are also enjoyed by the people of developed countries mostly.

8
Impact of Globalization on Work and Employment
References
Beck, U. (2018). What is globalization?. John Wiley & Sons.
Dustin, D. (2016). The McDonaldization of social work. Routledge.
Farzanegan, M. R., & Hassan, M. (2017). The impact of economic globalization on the shadow
economy in Egypt.
Helpman, E. (2016). Globalization and wage inequality (No. w22944). National Bureau of
Economic Research.
Nica, E., Manole, C., & Potcovaru, A. M. (2016). Competition in the worldwide workplace:
economic globalization and labor rights. Journal of Self-Governance and Management
Economics, 4(3), 73.
Pieterse, J. N. (2019). Globalization and culture: Global mélange. Rowman & Littlefield
Publishers.
Reader, J. (2017). Reconstructing practical theology: The impact of globalization. Routledge.
Ritzer, G. (2018). Rationalization, Bureaucratization, and McDonaldization. Core Concepts in
Sociology, 247.
Steger, M. B. (2017). Globalization: A very short introduction (Vol. 86). Oxford University
Press.
Tejani, S., & Milberg, W. (2016). Global defeminization? Industrial upgrading and
manufacturing employment in developing countries. Feminist Economics, 22(2), 24-54.

9
Impact of Globalization on Work and Employment
Vivarelli, M. (2018). Globalization, Structural Change and Innovation in Emerging Economies:
The Impact on Employment and Skills.

10
Impact of Globalization on Work and Employment
Assignment 2

11
Impact of Globalization on Work and Employment
Impact of Globalization on Work and Employment