Transcript Perfect Competition & Monopoly

Global Labor Trends
The Labor Market is changing rapidly,
are you prepared?
Road to Globalization
Collapse of Communism (1990) & Advances in Technology
World movement towards Capitalism
National Government’s lose power
Free Trade requires a set of “rules”
WTO becomes Global Referee
New Labor Trends
Over the past 15 years Labor has significantly changed
United States:
Unions are declining
Less “Job Security”
Declining Manufacturing Jobs
Rising Demand for Educated Workers
↑ Gap between Rich & Poor
Globally:
Globalization: “free trade” with other countries
Collapse of Soviet Union & Communist Economies
China & India emerge as economic powers (GDP growth > 10%)
European Union forms common currency
Worldwide free flow of financial capital & labor
Income Distribution
Low-Skilled Labor
S1
Bottom 20%
Top 5%
Change:
+ 1.0%
+56.0%
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P1
D2
D1
Q1
Qty
College Educated Labor
S1
The pay gap widens in USA!
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P1
Q1
D1
D2
Qty
Outsourcing Article
Outsourcing
USA & Globalization
How does the USA create Jobs with Globalization?
Trade Increases
sales for
U.S. Corporations
Innovation
CEO Pay vs. Average Worker
• 1982
• 2001
• 2007
42 to 1
531 to 1
365 to 1
Who is Rich in America: Video Analysis
Survival of
The fittest!
Mr. Rodgers on trial:
Globalized
Labor Trends
Mr. Rodgers Global View:
“I can’t protect a job that has
no economic right to exist”
Mr. Rodgers on trial:
“I can’t protect a job that has
no economic right to exist”
“He is exceedingly greedy and unnecessarily mean”
“He is economically doing the right thing, but morally
doing the wrong thing”
“He believes in survival of the fittest and that is what
it takes to succeed in the Global Economy”
France vs. USA Labor Markets
Benefits
U.S. Flexible
Labor Markets
Costs