The Productivity And Flexibility Of The Labor Market

918 Words Aug 27th, 2015 4 Pages
The efficiency and flexibility of the labor market are critical for ensuring that workers are allocated to their most effective. In Dubai hires skilled foreign workers mostly from South East Asia to fulfill its needs. Labor markets must therefore have the flexibility to shift workers from one economic activity to another. In today’s globalized world, technology is increasingly essential for firms to compete and prosper. The technological readiness measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries, with specific emphasis on its capacity to fully leverage information and communication technologies. The size of the market affects productivity since large markets allow firms to exploit economies of scale. Traditionally, the markets available to firms have been constrained by national borders. In the era of globalization, international markets have become a substitute for domestic markets, especially for small countries. There is no doubt that sophisticated business practices are conducive to higher efficiency in the production of goods and services. Business sophistication concerns two elements that are intricately linked. Innovation can emerge from new technological and non-technological knowledge. Non-technological innovations are closely related to the know-how, skills, and working conditions that are embedded in organizations. Although all the above said characteristics of competitive advantage sound…

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