: International Labor Memo
To: Director of Exporting and Trade
RE: International Labor Memo
Companies want to purchase labor as cheaply as possible, while maximizing production. Things that tend to affect quality these qualities in a given market are usually levels of education and experience. Things that tend to drive down the price of labor in a given market include: greater supplies of labor, lower demand for labor, lack of labor unions, and lack of government regulation. As a country with high literacy rate will tend to generate highly skilled manpower, as a country that will provide proper infrastructure that is good transportation system, good roads facilities, this will increase labor mobility. On other hand if labor unions fought for labor interests who are really in their favor with out exploiting industries owners will boost up labor moral etc and in end all above factors will cause to increase international business Labor is subject to supply and demand, just like everything else in business, international or otherwise. The basics of how labor forces influence international business. For instance, labor quality, quantity, labor mobility, minorities, the labor market and labor unions all have an influence on international business.
The labor quality refers to the attitudes, education, and skills of potential employees which widely vary from country to country and region to region. Labor quality seems to suffer in developing and poverty stricken areas due to a lack of education and globalization. Labor quantity is another important aspect of international business that can have either a positive or negative influence. Labor quantity refers to the number of available potential employees who posses the skills necessary to be productive and efficient employees. If a county has a large number of well educated and qualified employees the company benefits because it can hire qualified employees for lower wages. If the number of qualified employees is limited companies are forced to...
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