The Importance Of Globalization

2016 Words9 Pages
Globalization is a process that involves a lot of trade agreement, outsourcing of jobs or increasing multinational corporations (Vallas at el. 2009). Nowadays, the dynamics of trade in goods and services, and the flows of capital and technology that are leading the markets and production in different countries are becoming increasingly interdependent (Held, 2004). Globalization of economic activities has concerned as a new type of organizational structure (Sassen 2005). Global cities and transnational migration are interrelated topic of globalization (Jones 2010). The term of “global city” is a new global spatial order that establishment of a global liquidity, information and people through the transnational networks of the cities (Sassen 2005).…show more content…
These cities become interrelated global economic coordination mechanism (Robinson, 2009). Due to the complexity of the volume, intensity, and global financial transaction has been increased, financial has become decoupled from production (Jones 2010). The jobs of producer service are become global economy jobs and producer service economy entails a new class and spatial polarization (Jone 2010). The spread of transnational corporations and FDI in the internationalization of production has created the international supply of producer services to serve the needs of the global economy: financial products and services, particularly producer services (Robinson,…show more content…
In 1980s, there were various challenges on manufacturing industries to maintain their competitiveness, including land rising rents, the import trade protectionism in Western countries and the competition of Asian countries. Therefore, industrialists relocated their industries to China where had available of cheap labor and the cost of production were lower. Because of the large scale relocation of industries resulted in loss of manufacturing jobs. However, Hong Kong had not experienced massive job losses because two factors. First, the service sector expanded rapidly from 1,863,800 in 1980 to 11,061,001,980 in 1992 while the manufacturing sector had decreased. Those who lost their job were able to find work in service sector for alternative employment. Second, massive out-migration of Hong Kong residents who about 500,000 people were outflow. In pre-1997, labor market flexibility, it means that industrial workers can easily refuse from manufacturing to service industry booming switch will not become unemployed. For employers, business conditions and human demand for flexible employment requirement means that it is easy to re-hire workers capabilities and network connections (Chiu, So & Tam

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