Labor markets Essay Example for Free

Labor markets Essay Low wages in developing countries has prompted textile-manufacturers to migrate their operations from high wage countries. High wage countries who are also often more developed have also benefited by better product prices and the development of their labor markets to become specialized and technical. However, this has also severely reduced the number of jobs available particularly for skilled labor markets. Palley (2006) reflects that an amplification of such a scenario results in high wage markets to lose buying power and labor surplus will shift power from workers to the extent of overwhelm workers’ welfare. Another issue that has gained concern is the issue of labor exploitation. Seyoum (2007) believes that in the rush to establish transnational operations by companies in low wage developing countries and the eagerness of the se countries for businesses to boost the economy, the issue of welfare, working conditions and labor issues was not fully addressed. The inclusion of labor regulations in international trade agreements can address the issues effectively but there are significant challenges in enforcing and monitoring work standards within and across trade agreements. The liberalization of trade has allowed for greater opportunities in importing and exporting. It has increased product options, supply and distribution channels as well as skills that can be utilized to create and market products. However, this has also created greater challenges for retailers since more products are available creating the possibility of price wars and shifting power to buyers. Therefore, retail marketers have to devote greater effort in establishing product differentiation and loyalty. Despite the gravity of the issue, Palley (2006) points out that the general public has no significant opinion regarding where their clothes are manufactured that influences their buying habits. However, this does not mean that they have no awareness of the issues that involve transnational manufacturing, importing, exporting and labor issues. A survey of opinions suggested that a significant number of people have concerns about the impact to labor markets rather on the clothing product itself: price remains to a primary motivation. Many suggest that existing trends and issues are part of the adjustments necessary in establishing globalization. References Seyoum, Belay (2007). Trade liberalization and patterns of strategic adjustment in the US textiles and clothing industry. International Business Review, Volume 16, Issue 1, February. pp 109-135 Palley, Thomas I. (2006). Thinking Outside the Box about Trade, Development, and Poverty Reduction. Economics For Democratic And Open Societies, Project, Policy Paper #1. Washington DC: Economics for Democratic and Open Societies Project.