Labor Force Effect on International Business Essay

Labor Force Effect on International Business - Essay Example In most cases, wage constitutes a substantial portion of the total production cost of companies. As such, businesses find myriad ways and means in order to reduce labor cost for enhancing their viability. Another way by which labor affects international business is through workers' skills. Especially in the modern times, human resource is considered as one of the most valuable assets of a company. This is because it is the employees of the company that possess the skills and expertise required for the efficient completion of production and other business functions. In this regard, the skill level of labor employed by companies is one of the key ingredients to ensure organizational success. With the advent of globalization, labor becomes a central issue in light of prevailing wage and skill levels. Given the technological advancements, employers have found a way to tap the global labor market (Tristan, 2003). Multinational corporations have benefited from the use of modern ways of communication, like electronic mail and video conferencing, to rationalize their labor factor. With the high-tech gadgets, they have taken advantage of highly-skilled and less expensive labor force available in other countries.