Labor Dear Interns: Congratulations! You

Labor

Dear Interns:

Congratulations! You have become a part of a company that plays an integral role in the challenging, competitive, yet exciting world of international commerce! However, there are certain things to keep in mind when communicating with our various outposts located abroad, regarding the basics of how labor forces influence the ways international businesses comport themselves in other lands.

Labor quality:

First, ask yourself this question: does the nation in consideration have a highly skilled and educated labor force? If so, is the minimum expected wage for skilled and unskilled workers comparable to the wage structure of the United States, higher (as in Western Europe) or lower (India)? This will affect the percentage and types of employees from the local population that are utilized by an international company. The standard of living of the nation and the taxation system is another important factor. In some nations, even if wages are high, a high proportion of the local's wages are diverted to the government for taxes, in exchange for extensive benefits and pensions. Thus what seems like a high wage may not seem like a high wage to an employee after he or she has paid his or her taxes. Conversely, a low wage in the developing world may provide an employee with a relatively comfortable standard of living, and even skilled employees may accept a lower wage than would be fair in the United States.

Quantity:

In Europe, an aging population and a low retirement age makes labor a fairly scarce, and thus an expensive commodity. Guest workers in some region provide a base of a larger, more unskilled source of cheaper labor, but a foreign-based company bringing in more foreigners can cause friction with the host country. (Mason, 2006)

Mobility:

In more industrialized areas, labor is more mobile because of the existence of cars and transportation systems. The more effective such systems of transport, the easier it is for labor to either to commute to work a fair distance from their home. Cities provide concentrated sources of labor that may not need to commute far distances. Also, the willingness of laborers to leave their home communities and relocate is an important cultural factor to remember, as well as the cost of transportation. Finally, in some areas, gas for cats is quite expensive, while public transportation is fairly cheap, which will affect labor patterns of migration and may be different than one might expect from one's experience in America.

Minorities:

Local attitudes to international companies, towards a diverse workforce, and to employing refugees may vary from country to country.

Labor market:

The diversity of the labor force, whether it is primarily skilled or unskilled, diverse or homogeneous in its ethnic, age, or skill composition will affect what types of laborers are most desirable for employment. What constitutes a high standard of living or acceptable or desirable occupations or employment conditions may also affect supply and demand of certain types of jobs and payment brackets. The availability of unemployment compensation may also play a role.