The Great Doubling Essay Example | Topics and Well Written Essays - 3750 words

The Great Doubling - Essay Example During this time, innovations in communication and innovation made it easier for offshoring and the global migration of workers (Grossman & Rossi, 2008, p.1987).   The new wave of globalization that has swept the world has brought about both actual and perceived labor market insecurities in industrialized countries. Over the past 15 to 20 years, the number of workers who have been displaced by foreign trade and investment as well as labor inflows from India and China has increased considerably. â€Å"The Great Doubling† was a term coined by Richard Freeman to describe the increase of the global labor pool from about 1.46 billion in the 1990s to about 2.93 billion currently (doubling). Freeman (2006, p.11) argues that if the US and generally other industrialized countries are able to adjust well to this great doubling, people from these countries can be able to benefit from having all people on the same economic status.   The â€Å"great doubling† compliments well with Baldwin’s (2006, p.45) great unbundling where he argues that globalization means the great unbundling and is set to be a dominant factor in the economic field. Globalization applies pressures to an organization to relocate their resources. Before globalization reached its apex, economic interactions were bundled together such that transport costs were minimized or in some situations eliminated completely. Due to this, the number of wages to be paid plus the cost of goods was determined by the local market and not the global market. Globalization is set to bring major changes to this and thus will affect the wages of skilled and unskilled workers in both low wage countries and advanced countries.