Indledning
Growing competition from Asia is putting pressure on European manufacturers. Competition is putting pressure on the IT – sector from India and in generally cheaper manual labour from Asia and Eastern Europe.
The pressure has left Western countries focusing on other measurements that would help them remain powerful such as educational system or trade- and labour unions.
The pressure from Asia has led European manufacturers to face a growing dilemma, either workers have to work for lower wages or they risk losing their jobs due to outsourcing.
Various experts among others Eckhard Cordes argue that Europe especially Germany will lose thousands of jobs (work places) as Asian labour is less expensive than European labour.
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Uddrag
The globalization has intensified the competition in the sense that European manufacturers face competitors around the world. This means that European workers have to accept wage restraint, or they will lose their jobs in order to be taken by cheaper workforce.
In Germany more than 40.000 people took part demonstrating against the unfair situation and demanded higher wages and job security, this has been the biggest protest since the end of communism.
The German government is in a difficult situation because it would like to help German workers but still has to secure German competitiveness.
Such situation is unfortunately faced by many Western companies nowadays. The American economy has been better at creating jobs and the general growth level (GDP) is higher.
In Western Europe economies are beginning to rebound, but in countries such as Germany unemployment is still rising. There are many reasons for this phenomenon, but one of them is outsourcing.
Outsourcing is a practice of moving jobs overseas mainly from Western countries to Asian countries. Another reason for the jobless recovery is technology, which is taking over workers’ jobs making them superfluous.
The growing global competition is making the fight for a work place harder especially for work places that require low skilled employees. This means that the high skilled workers in Asia are as qualified for the jobs as Western workers.
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