Globalization refers to companies expanding their operations internationally through activities like sales, ownership, or manufacturing in foreign markets. As globalization increases competition, employers feel more pressure to lower costs and increase productivity and efficiency. This has led many companies to offshore high-skilled jobs like sales managers and HR managers to lower-cost foreign locations. For around 50 years, globalization has boomed as governments reduced trade barriers and encouraged free trade by dropping taxes on international business and forming economic free trade areas.

1. Welcome to
Human Resource Management
Introduction to Human Resource
GLOBALIZATION AND COMPETITION TRENDS
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2. Globalization refers to companies extending their sales,
ownership, and/ or manufacturing to new market abroad.
For example, Marriott International, Inc., is a global
leading lodging company with nearly 4,500 properties in
87 countries and territories
(http://www.marriott.com/marriott/aboutmarriott.mi).

3. Globalization compels employers to be more efficient. More globalization
means more competition, and more competition means more pressure to be
“world class”- to lower cost, to make employees more productive, and to do
things better and less expensively.

4. The search for greater efficiencies
prompts many employers to
offshore (export jobs to lower-cost
locations abroad). Many
employers offshore even highly
skilled jobs such as sales managers,
general managers, and HR
managers.

5. For 50 or so years, globalization boomed. Changes in economic and political
philosophies drove this boom. Governments dropped cross-border taxes or tariffs,
formed economic free-trade areas, and took other steps to encourage the free flow of
trade among countries.

6. What is another trend
in globalization? YES,
it’s deregulation