Labor Markets in a Globalized World Pt 2

Labor Markets in a Globalized World Pt 2 - Labor Markets in...

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Labor Markets in a Globalized World – 2/4/09 Lenovo is a truly global company in the following sense. It originated in China but is so global that it has no world headquarters anywhere. It operates in a virtual setting. The chairman of the board and CEO both live in the same place in North Carolina. The head HR director lives in Seattle. Other directors live all around the world. They do so by using technology to connect on the Internet. Lenovo was once called Legend. IBM realized it could get into a new market by starting to develop business services. It decided to get out of the business of making computers. It sold the Thinkpad trademark and the manufacturing facilities for the Thinkpad to Lenovo. Lenovo suddenly became a truly global company. Production in a Globalized World: Chinese company with nine production plants, five in China, producing computers that U.S. customers buy. Lenovo had two types of employees: regular workers (3000) and contractors (1000). The contractors were temporary and Chinese labor law reg’s do not apply (like severance). Lenovo hires the contractors to tell which employees it wants to keep, and will promote contractors to regular workers when regular workers decide to leave Each of these people had a particular job to do. Everyone was at their workstation non-stop for two hours, then had a fifteen break, then worked for another two hours, another fifteen break, etc. for nine hours A Lenovo employee earns $.80/hr., so approx. $7/day “whatever it is that we might have been doing at home, the reason we are at lenovo is because we earn more, are safer, etc.” – attitude of the employees prof. fields interviewed (they also mentioned non- economic benefits of this job) The job is truly global. Product orders come in from all over the world, and the products go out to all over the world. Definitions of economic globalization: Joseph Stiglitz (p. 6): The closer economic integration of the countries of the world through the increases flow of goods and services, capital, and even labor Thomas Friedman: Globalization 1.0, 2.0, 3.0; one is countries and muscles, second is multinational companies, and three is newfound power of individuals to collaborate and compete globally, enabled noy by horsepower or by hardware but by software Yale Global Online: Globalization is a relatively new term used to describe a very old process… Capital can move freely, products can move freely, digitized documents can move freely, ideas can move freely. But people cannot move freely from one place to another. So we have a world that is very globalized but is not completely globalized yet. One of the implications of globalization is that there is much more competition for anything, because as
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This note was uploaded on 03/04/2009 for the course ILRIC 6350 taught by Professor Fields during the Spring '09 term at Cornell University (Engineering School).

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Labor Markets in a Globalized World Pt 2 - Labor Markets in...

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