GLOBALIZATION AND AMERICAN ECONOMY

Globalization and American Economy

American Employers adopting New Business Trends

The employers in America will have to adopt new trends of trade as they conduct business with countries that were initially poor but have started seeing trade and economy growth. The trends will change because of globalization that has taken over the world, enabling countries to develop, thanks to the help of other able countries. For many years, the goal of globalization has been to provide better competing platforms and enable countries operate businesses or enable production at reasonably lower costs. According to Collins (2010), goods and services production in all parts of the world have been made easier because of the easy money flow and the spread of information. Just as the author explains, globalization is all over, and this would mean that American services and product providers work with economically promising countries that were once underdeveloped. Because of such new trends, American employers will take up new trends and strategies based on the changes that are seen in the new market. Pologeorgis (2017) asserts that globalization today forces businesses to adopt new trends based on new ideas that are brought into the market to make positive changes. Therefore, American employers would need to change their tactics, as they have to consider both the rights and the interests of the tremendously growing communities to stay in business with them. Additionally, American employers would need to embrace diversification as a trend, since it will ensure that they involve the international financial communities as well as partnering with them to acquire multinational markets for their businesses. America remains a superior economy because they take risks and are ever ready to adopt different trends in the global market that make a difference in how they grow their markets. 

How does the US conduct business with this countries?

American is known as a powerful and strong economy, and therefore is admired by many countries. The same country has gone through different changes over the years in terms of employment and business opportunities that have been created. America was known to rely on the traditional manufacturing method, and companies were not keen on employing knowledge and service based employment strategies. Over the years though, things have not been the same, as firms have gone ahead to employ such services to acquire value for any services provides. America has been able to nurture and develop talent and skills from different individuals, both in the country and outside. Collins (2012) explains that through the dealings that America has been able to do, wealth and economic realities have been met by the country. This shows that America is a country that has never been shy to work with other countries, even the under-developed ones that were just starting to develop. Even so, countries across the globe have been complaining about America and why it needs to do more to secure the economy of other countries that are slowly coming up economically. Therefore, America has come up with various policies over the years to work with countries that were economically unstable, but are showing steady improvement over the years through trade, education, tax regulation, monetary policies and other activities. Laboissiere and Mourshed (2018) explain that over 40 percent of American employers complain that they are not able to access employees who are well skilled with quality education, to run their ever-growing economy through knowledge based services. There is need for America to deal with the skills gap” and that is why it goes ahead to employ and go into business with individuals in other countries that are growing economically. 

One way that America deals with countries that were poor but are steadily coming up economically is by identifying the areas or sectors that have a high potential for growth. Due to globalization and other issues like technology, many countries are starting to show promise in the growth of their economy. This is made possible by the need for other countries to make investments in them, and help them grow. Therefore, America is known to identify such countries that show promise of high economic growth. Such countries have employers that work for various companies, but there is always a lack of turnover of work, or workers. According to Laboissiere and Mourshed (2018) the American government works with countries that show promise in economic growth by scouting their workers who usually have a lower chances of turnovers in regards to jobs. Just as the authors show, America conducts a market analysis to know which countries show more promise. This is done by doing enough market research that will show the supply and demand trend and the workforce needed. The American government then goes ahead to employ the services of such workers, who work under the basis of knowledge and service, a trend that helps improve the American economy (Pologeorgis, 2017). While other countries struggle to adopt such policies, America has had the expertise to run such programs, and it has made it possible for the country to become a superpower with the leading economy. The leading employers in the American market always come together to discuss the importance of employing knowledge and skills in the employment field, since it is a trend that helped improve the market. 

Knowledge and Service-based Employment and Compensation 

The move from manufacturing to knowledge and service-based employment will change the dynamics of providing jobs and compensating employees. For a long time, there have been discussions and debates on how to make improvements on the economy of America, especially since many countries are coming up steadily to overtake it. Many economists have seen the need to make new changes that will ensure the American economy remains competitive and serves its people and the outside world better. According to McCullough (2018), the manufacturing sector in the American economy has dominated for many years, and it has always meant so much to the American employment sector. Just as the author explains, the trend of manufacturing employment has been the case for America, but there is need for a change. McCullough, a Chief Marketing Officer, goes further to show why there is need for these changes. She explains that “according to the Bureau of Labor Statistics, the overall number of jobs in the U.S has been flat since 2000 […] but contrast, jobs in the service sector are up” (McCollough, 2012).  There is need for knowledge and service-based employment for jobs and compensation in America, because it will change the dynamics of the economy. The adoption of the knowledge and service-based employment and compensation will ensure that there is a more domestic approach. Companies and business entities in America would see a growth in their employers, their technical “know-how” and their ability to produce quality services for their employers and consumers. These move will also create more employment opportunities for the American people. Educated individuals who are able to provide advanced services make the economy grow further, which is good for a country. 

Knowledge and Service Based employment for geographically dispersed markets

The move from manufacturing to knowledge and service based employment would mean the adoption of different trends that will work for markets that are geographically dispersed. The use of knowledge and skills acquired from classrooms have been adopted by many business entities to change how they provide their services to their consumers. This has been different and positive, especially since traditional manufacturing was not beings as productive as expected. Knowledge based service provision has gone ahead to change the manner in which goods and services are produced, how employments are done and how income and compensations are reimbursed. According to McCullough (2018), employment and technological production that is based on services has changed the manner in which companies work, and it has adopted the work entities that operate on different geographical fields. It is clear that the geography of a business entity has the ability to alter the nature of work, whether positively or negatively. The geographical alterations of companies have changed the manner in which businesses work. The geographical aspects have a way of changing work performance, which could be a problem or a positivity for a market. For instance, when a market is geographically dispersed, it means that the roles of employees will be changed, and the work they put in will not be the same. Essentially, there will have to be a division of labor, and this would make it difficult for managers who wish to supervise their employers and follow up on their performance. 

America has seen significant changes in how companies and markets work, especially by how service based employment means for markets that are geographically dispersed. The move from manufacturing to knowledge and service based employment means that markets will experience the division of labor, and a change in how structures will be organized. The employment market would have to change its occupation strategies, which means that the management staff have to do intense vetting to ensure they hire self-driven individuals. When the market is geographically dispersed it means that there is a possibility of outsourcing work, or awarding contracts to individuals who are ready to work in different cities, or office space. This is not an easy step since most people on permanent employment do not appreciate transfers from some offices to others. Heerwagen, Kelly and Kampschroer (2016) hold that “over the past decade, a new pattern of work is emerging as the knowledge economy realizes the full potential of both new technologies and new organizational models”. Just as the author explains, an organization which is dispersedly geographically and adopts the knowledge and service based employment model becomes a more cumbersome working environment, as there is constant need for the employment market to work more critically. The move from the traditional manufacturing to knowledge and service based employment means that the markets that are geographically dispersed need to employ more management that will co-ordinate workers better and ensure that the workers shares. Essentially, as the nature of markets change over time, there is need for the employment of new and functional trends that will facilitate team work. 

Compensation Plan Changes for Knowledge and service based employment

In most companies and business entities today, a compensation plan is made based on internal and external factors, especially in the migration from manufacturing to a knowledge and service based employment practice. In such cases, there is need for the management to consider their pay system, evaluate jobs of different individuals and other theories or ideals of payments. The act of compensation in the employment sector is critical, and it plays a role in ensuring the provision of high quality work. The degree of commitment that an employee shows to their employer is directly related to the compensation rates involved. Knowledge and service based employers focus more on the skills that a person has, and not the job description that a person reserves. For many years, the employment industry has gone for compensations based on the job titles, failing to curb the idea that the job skills are what determine pay. According to Gleeson (2018), there are different types of compensation structures that exist, but they all depend on both the job description and the knowledge that is seen through performance. Just as the author explains, compensation is essential, as it is the only reward that workers get to support themselves and their families. There is need for an evaluation of how firms pay their employees, whether through the measure of their productivity or through the requirements of the laws and regulations of employment. Gleeson (2018) holds that there have been changes noticed in the employment sector, as firms move to be more organized in regards to how they execute their jobs and how they treat their employees. Therefore, compensation needs to be considered at all times when it comes to knowledge and service based employment, since at this point, employers need to be compensated depending on their education and their skill sets, not their positions. 

There is need for a change in how compensation are given, when a company adopts the knowledge and services based employment strategy. If you are currently looking for employment and you think that you have the qualifications needed and the right skills that counter a job description, then you need to go for a company that pays their employers based on knowledge-based payment system. Knowledge and services based employment systems have a way of establishing professional levels that ensure a company performs well. When a company employs people based on their skill set, then they are at a better chance of achieving their goals. There is need for all stakeholders to establish such rare talent and skills that come with an education that is of quality. Gleeson (2018) asserts that knowledge and service base employment is a market changer, as it ensures that employers are fit for their jobs. This should mean therefore, that if employers are picking individuals who have the proper skill set, then the compensation strategy should work for the employers. Therefore a company needs to change the manner in which they pay their employers when they employ them based on knowledge and service provision. A well-organized company or firm will ensure that they pay their employers well, so that they do not lose the talent and the skills of their employers. Firms are moving from manufacturing to knowledge based services, therefore they need such employers to fit their needs. In general, workers that are employed because of their knowledge and service provision need pay that is well thought and organized to fit their assignments and their input. 

References

Collins, M. (2010). The Pros And Cons Of Globalization. Manufacturing Net. Retrieved from https://www.manufacturing.net/article/2010/06/pros-and-cons-globalization

Gleeson, P. (2018). Job-Based Pay vs. Knowledge-Based Pay [Ebook]. Retrieved from https://work.chron.com/jobbased-pay-vs-knowledgebased-pay-8232.html

Heerwagen, J., Kelly, K., & Kampschroer, K. (2016). The Changing Nature of Organizations, work, and Workplace [Ebook]. Retrieved from https://www.wbdg.org/resources/changing-nature-organizations-work-and-workplace

Laboissiere, M., & Mourshed, M. (2018). Closing the skills gap: Creating workforce-development programs that work for everyone. Retrieved from https://www.mckinsey.com/industries/social-sector/our-insights/closing-the-skills-gap-creating-workforce-development-programs-that-work-for-everyone

McCullough, N. (2018). Services, Not Manufacturing, Will Revive The U.S. Workforce. Forbes. Retrieved from https://www.forbes.com/sites/ciocentral/2012/04/19/services-not-manufacturing-will-revive-the-u-s-workforce/#76a88c912464

Pologeorgis, N. (2017). How Globalization Affects Developed Countries [Ebook]. Retrieved from https://www.investopedia.com/articles/economics/10/globalization-developed-countries.asp