Is Globalization To Blame For Unemployment?

It is a well-known fact that globalization increasesprocesses and outsourcing certainly changed the way
productivity and life standards. There are a lot ofhow business is being done. However, it is not only
advantages which causes business owners to workthese factors which contribute to the unemployment
on the goal of expanding the business overseas.rate. The biggest contributor to unemployment is
While this is proving to be beneficial to countriescompanies who close down because of the recession.
where products and services are being exported to,The increase in number of small businesses helps
the concern grows for locals. This concern is largelyalleviate the unemployment rate and if these small
focused on that fact that the unemployment ratebusinesses go global or outsource some of their
continues to rise thereby giving the impression thatservices, it does not necessarily mean that there
globalization is one of the causes.would not be jobs for locals. Some might argue that
It is true that because of the economic downturn,globalization and outsourcing may mean a lesser
most businesses are looking to outsource services todemand for workers. This is called structural
take advantage of lower labor costs in developingunemployment and even when the economy was
countries. Outsourcing has been a hot debate topicdoing better than it is today, this still happens but it
ever since its inception. The main idea is that the localdoesn't warrant a rise in unemployment. Globalization
economy suffers since the jobs are handed over toproves to be more beneficial than harmful apart from
other countries instead of their own.some of its disadvantages. The trick is to change it
Globalization is responsible for modernizing businessto work, rather than against, your business.