Economic Impacts on Individuals
Higher income
Globalisation enables easier access to knowledge, skills and ideas. People also have freer mobility. With a global shortage of talents in areas such as artificial Intelligence, aerospace, cyber security, nursing and driver less technology, governments and companies are willing to pay compensation packages to attract people in these areas.
Example
- Jumandi Husani - NTU graduate who was headhunted to work in Dubai for triple his pay
- Career prospects of talents who have experience in driver less technologies
- Apple and Google known to offer attractive salary packages to poach staff from car makers
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- Developments in transportation
- Global shortage of talents
- People with skills will be headhunted to work in other countries
Loss of income
Individuals can also face a loss of income due to globalisation. Since people and capital can move freely in globalisation (transportation and agreements), those who are unable to keep up with the changes in skill can be vulnerable to losing their jobs. Jobs may also be lost when MNCs close down their operations and shift to another location. Similarly, lower-skilled people from other countries will come in to look for jobs and this is where the citizens might be displaced or their salary might be depressed.
Example
- IBM opened $90 mil manufacturing in 2010
- IBM SG announced that the facility would be shut and 200 of 400 professionals were retrenched in 2019
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- Globalised brainpower can be very porous and fluid
- MNC can create jobs but can also retrench staff