Labor Memo

Labor Memo

When conducting business outside the U.S. it is important to know and understand how labor forces influence international business. In order to be successful you must develop a strategy and a comprehensive understanding on the different types of labor.

Labor Quality and Quantity
Labor quality refers to the attitudes, education and skills of available employees (Hill 2005). One of the most important factors to consider when you are considering doing business in an area or region is the quality of the labor. The labor force must be analyzed in order to determine whether the right skill levels are available to profitable conduct business. Some factors to consider would be education and experience. Other factors to consider are labor quantity. If you have a large supply of labor it could affect wages along with the lack of government rules. Also if you have a large number of available employees it can be towards your advantage. It gives you the power to pick and choose employees that have the best qualifications.

Labor mobility “consists of changes in the location of workers both across physical space
(geographic mobility) and across a set of jobs (occupational mobility).” Labor mobility allows the workers to improve economic conditions if where they live is not a match for their skill. These type of workers are divided into two groups, foreign born and foreign.
Foreign born population are people that have moved permanently into another country.
Foreign workforce are people that are in another country on a temporary basis.

Minorities and or traditional societies are another important group to consider. This group is defined as “a relatively smaller number of people identified by race, religion, or national origin who live among a larger majority.” An advantage for to hiring minorities in a foreign country would be the immediate availability of labor. A disadvantage would be discrimination as they may be viewed as inferior to the majority and some...

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