Labor Union Challenges

Labor Union Challenges
From the information that I’ve acquired throughout this course, and some research done on the side, I have gathered what I think to be the five most important challenges effecting labor unions within the past 5-10 years. These challenges are:
• Foreign direct investment
• Multinational enterprises
• New technologies
• Financial markets and,
• Deregulation and liberalization
Though I overall believe that some labor unions are not adequately designed and innovative enough to currently operate in this globalizing economy, in this essay, I will still examine these five challenges towards today’s labor unions. The challenges I have listed are all appendages of the generalized threat to these labor union, globalization. I will start off by giving an individual description of each challenge then segue into giving reasons as to why I believe each challenge to be important and what I’ve researched to be the labor unions possible means of contesting these challenges.

Though globalization offers new worldly opportunities for trade like increased competition between enterprises, it had created a balancing effect between thriving and suppressed economies. The balancing effect causes thriving economies to decline while suppressed economies rise. The internationalization of production directly affects the environment of collective bargaining.

Globalizations foreign direct investment can be defined as cross border expenditures of entities to acquire or expand corporate control of productive assets. FDI has been growing dramatically as a major form of international capital transfer. According to a Google search of the FDI world flows it has been shown that between 1980 and 1990 FDI have tripled. These trends are theorized as predicting the scale and scope of multinational enterprises by looking to differences in competitive advantage across firms or countries that might lead to corporate control across borders. This poses a threat to some...