Is Globalization Good for Workers? Definitions and Evidence from Latin America

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Part One – Outline of key arguments and insights According to most economists, globalization is seen as a beneficial asset for workers, while on the other hand, various sociologists, anthropologists, and historians would beg to differ. Several data determines that even though globalization has increased average incomes in Latin America, the cases of employment quality still tend to be deteriorating. It is important to note the different dimensions of the effect globalization has caused and mechanisms that either benefit or harm workers in changes found within labour demand and work organizations. Following that, a brief summarization of the statistical data from the sectorial case study of Chile’s labour impact will be looked at. When…show more content…
This subsequently should increase the demand of labour thus an increase in income distribution in developing countries. A large group of authors writing on the topic expect economic gains from globalization both for enterprises and workers, but alert to several side effects that increase insecurity for workers.11 First, structural changes in the economy in line with competitive advantage cause decline in some economic sectors and growth in others, forcing workers to survive a period of unemployment while looking for new jobs and possibly acquire new skills. Second, fluctuations in the price of products in the international economy can translate into variations of employment levels, which will cause job insecurity. Finally, short-term capital flows can have a major influence on countries’ exchange rates that in turn can endanger the competitiveness of the real economy and cause job in security. Moreover foreign investors may potentially be more prone to move on to other countries than domestic investors. Again, this would lead to more job in security. On a more optimistic note, clients’ vigilance worldwide may contribute to better compliance with basic labor standards to the extent that Non-Governmental Organization (NGO) campaigns and negative press reports make bad publicity. Also, international trade can lower domestic prices for certain goods, which benefits workers given that they are consumers as well, to
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