Group 1 - Hexmony “Hexmony Blooms for a Sustainable Future”

Globalization & Employment

CASE SUMMARY Tran Song Ha Anh - 31211022068

Phan Nguyen Anh Duong - 31211026703

ANALYSIS Nguyen Hoang Thien Nga - 31211022246
Nguyen Ngoc Phuong Linh - 31211024915

Nguyen Tran Khanh Xuan - 31211024698

RECOMMENDATIONS
Pham Quynh Anh - 31211022060
 (Nayyar, 2015)
CASE SUMMARY
This article seeks to analyze the implications and consequences of globalization
for employment in the developing world and industrialized countries.

The Great Recession resulted Technological progress

from the interdependence increase levels of productivity

GLOBALISA
Sharply drop in Reducing production cost
-TION employment elasticity to be price-competitive

Unsuitable objectives of Macro-economies policies

JOBLESS Sharp contraction in employment, both in industrialized and

developing countries
GROWTH Low-quality employment: poor working condition & benefits

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)

ACADEMIC TERMS
The relationship between two countries where each of them is depen-
Economic
dent over the other for the supply of necessary goods and services
Interdependence
(Tomasetti , 2024)

The set of government rules and regulations to control or stimulate the

Macroeconomic aggregate indicators of an economy frames the macroeconomic policy.
policies
(The Economic Times, 2024)

Price Stability Informal employment

A situation that avoid prolonged periods of Employment arrangements not providing
excessively high inflation or deflation individuals with proper legal or social protection
(Eesti Pank, n.d.) (O’Higgins & Viegelahn, 2021)

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)

GLOBALISATION exacerbated CRISIS

Interdependence and
Intergration among
countries
Financial crisis in America 2008 Coronavirus pandemic began in
Wuhan, China in the end of 2019

Economic
Contagion Interdependence
concept Globalization
Theory in Theory
Finance
disturbances quickly swift transmission of
spread to other countries diseases globally

Covid-19: The twin crises

The Great Recession 2008 (economic and health crises)
(Guedhami et al., 2022; Lane, 2012) (Reserve Bank of Australia, n.d.; Pol Antras et al., 2020)

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)

GLOBALISATION increases the UNEMPLOYMENT RATE

GLOBALISA Competition on price Increase in labor

Import surplus
-TION between countries productivity

JOBLESS Lower wages for Downsizing the Decline demand for

GROWTH workers (ILO, 2004) workforce domestic products

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)
Ineffective MACROECONOMIC POLICIES
amid GLOBALISATION

Macroeconomic policies DID NOT prioritize

economic growth and employment creation,
solely focusing on price stability and reducing
fiscal deficits (Heintz, 2006; Nayyar, 2011)

Current policies on price stability are

insufficient, necessitating more effective
solutions.

Source: Heintz and Pollin (2003).

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)

Recommendations & Solutions

ARGUMENT 1: Exacerbation financial crisis in
globalization context

RECOMMENDATION
Reduce interdependence and integration

Increased autonomy and control (Aiyar et al., 2023)

Lower risk of economic contagion and financial crises (UNCTAD, 2016)

- Reshoring - - Collective Resilience -

SOLUTION
US manufacturing Allied countries deter
companies leaving China China’s economic bullying
(Lee, 2022) (Cha, 2023)

Lower the risk of heavy interdependence and domino effect - a fall in economy
in a country will have the same knock-on effect in neighboring countries

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 (Nayyar, 2015)

Recommendations & Solutions

ARGUMENT 3: Ineffective
ARGUMENT 2: Growth of unemployment macroeconomic policies

RECOMMENDATION RECOMMENDATION
Non profit-led organisations Reforming macroeconomic policies

Create economic stability and mobility

Price stability fails to deliver on promises of full employment
Prioritize social welfare and community development
and economic growth.
over maximizing profits (Hamilton, 2019)
Globalization constraints restrict exchange rates, interest
rates, and financial instability (Boeckx & Cordemans, 2017).
SOLUTION
Providing microloans for economic SOLUTION
empowering of poor Expansionary fiscal and monetary policies

Garmeen Bank provides small loans without collateral Increase government spending or reduce taxes
to women to foster entrepreneurship and self- Increase money supply and lower interest rates to encourage
employment, thus reducing poverty and creating jobs borrowing and investment
(Chowdhury et al., 2013) (Espinoza et al., 2022)

CASE SUMMARY ANALYSIS RECOMMENDATIONS

 References
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