The Mexican professionals and executives on the other hand based on the existing relationship take advantage of the lowered restrictions on the borders to seek employment in foreign countries and negotiate for better pay. However the only drawbacks are opportunities denied which are occupied by the foreigners in similar positions (Economy watch, 2010).
Wage Differences
Different countries have different wages; in some cases the government has a direct influence in setting the wage bracket for employees in different categories. Wages vary from one country to another which is backed by a number of factors, various fundamentals and the economic conditions at any given time. Different economic situations call for different measures and adjustments as may be stated by the concerned authorities. The economic power of a nation is gauged in terms of the availability of natural resources and economic developments.
The average wage is higher in countries where labour productivity is high. The difference in wages across different nations is a reflection of the differences in economic developments and labour productivity. Certain tasks are labour intensive while others require special skills which therefore have an impact on the wage. Each country has its own absolute advantage and comparative advantage over the other which therefore explains the wage difference. Governments of different countries may as well set wage brackets and minimum wage based on the performance of their economies having factored in its revenue sources (International Labour Office, 2008).
Globalization on the other hand has opened up markets which has shaped the future of the job markets. More economies have opened up for business from around the globe where by companies are sourcing for cheap labour from countries that offer low wages for the services offered. Professionals are capable of selling their skills online where jobs have been done and submitted digitally which has lessened the burden of having...
More companies have seen this as a cost cutting measure to save on their expenses thereby boosting their profit margins.
Globalization contributes to wealth creation, creates flexibility within the job market and develops the economies of the participating nations. Globalization therefore cannot make wages to be the same around the world but will instead makes it competitive. It is upon the individuals to make use of the free economy and set their wages based on their qualifications and the technicalities involved (Jesse Vorton, 2010)
In conclusion, counties should open up for foreign workers to encourage foreign investments and develop the economies. Globalization has opened up markets where countries should embrace the concept and create opportunities taking advantage of the wage difference to source for labour. Mexico should open more markets, develop more contacts and continue building its economy so as to sustain the growing population. If Mexico grows its economy, it will support the labour market and productivity will be improved. However, governments should control and ensure that the locals have equal opportunities to reduce unemployment level which is a major problem in almost all the economies.
References
Economy watch, (2010). Foreign Direct Investment in Mexico. Retrieved October 21, 2012 from http://www.economywatch.com/foreign-direct-investment/countries/mexico.html
International Labour Office, (2008). Global Wage Report2008/2009. Retrieved October 21, 2012 from http://www.ilo.org/wcmsp5/groups/public/-dgreports/-dcomm/documents/publication/wcms_100786.pdf
Jesse Vorton, (2010). Globalization's Impact on jobs and wages. Retrieved October 21, 2012 from http://www.helium.com/items/1873177-jobs-and-wages-globalization-creates-jobs-boosts-wages
Maps of the world, (2012). Mexico Population. Retrieved October 21, 2012 from http://www.mapsofworld.com/mexico/population-in-mexico.html
