Question

Explain by give an example, how does current global trends towards isolation affect globalization? Are these trends temporary or permanent?

Answer 1

Under the trump rule, strong executive measures have been taken regarding H-1B rules making it hard for US Campanies to hire people outside the US. One of the key effect of globalization is free movement of people across countries based on the demand of the market so the steps taken by Trump for immigration are against globalization.

The whole concept of globalization is based on economies of scale that is production at the lowest cost.For US companies, its better to hire from outside US as it less costly than hiring US people.

These trends are looking permanent as of now because US government wants there people to have jobs which is difficult due to following reasons :-

1) Ever increasing employable population in the third world countries.

2)For many countries, US is most important source of business.

3) US companies also hiring from other countries like India, China, Brazil etc because they have their offices in those countries. These economically emerging countries have high demand of western products. Now to understand consumer of these countries US companies are hiring people from these countries only.

4) Culturally people from the third world countries are accustomed to work hard at low cost which is great for the companies.

5) Because of large population, tough competition is there in the third world countries so those who end up working in big brands, they are highly intelligent and hard working.

6) Third world countries are still not technically advanced so they could generate more business in their own countries.

For above reasons, US government has to follow strict rules regarding immigration otherwise it will hard to generate jobs for US people.

There is one more twist in the whole immigration rule that is if US companies would not able to hire people from outside India, they would outsource the complete work outside US instead of hiring people in US.