Answer to Question #233948 in Microeconomics for Kebalepile Kebas

Question

essay:
-How does globalisations affect the demand for high and low skilled workers across the
globe?
-Given that much of South Africa’s economic activity is based on the natural resources, do
you think the country is ready to make the shift to a more technologically driven production
process?
-South Africa has a large contingent of unemployed and low skilled workers how do you
see the integration process affecting the mismatch between the demand and supply of
labour within the country?
- Apart from the mismatches of supply and demand in the labour market, what other factors
are largely contributing to inequality levels within the country?
-Finally, in light of the unique socio-economic challenges facing the country, provide a few
recommendations on how the South African government can best manage the push towards
the fourth industrial revolution, so as to improve the employment of labour in the economy
whilst subsequently providing a more inclusive and equitable economic structure.

Answer 1

Solution:

1.). Globalization has resulted to increased integration of labor markets and closed the gap between workers in advanced and developing economies through the spread of technology. It has led to the reduction of demand for low-skilled workers and an increase in demand for high-skilled workers. All this are as a result of large-scale technological developments.

 

2.). South Africa is ready to make the shift to a more technologically driven production process due to the many benefits it brings. The adoption of technology in the production process has the ability to reduce the costs of production, limiting accidents in production sites, establishing high standards of quality, and enhancing efficiency in the production process.

 

3.). The integration process will increase the interactions between varied operation units, thus result in an increase in the quality of labor supplied. Therefore, workers will be able to learn the needed skills hence reducing unemployment and low-skilled workers. Ultimately the demand for skills will decrease since labor supply of such skills will readily available.

 

4.). The other factors that are largely contributing to inequality levels within the country include the following:

·        Technological advancements.

·        International trade and globalization.

·        Wage-setting organizations.

·        Minimum wage.

·        The decline in trade unions.

·        Declining labor force mobility.

·        Labor policy options.

 

5.). The South African government can best manage the push towards the fourth industrial revolution by doing the following:

·        Ensuring that young people are offered the tools required to be successful in a digital first economy.

·        Closing the education gaps and sets up the society for a digital overhaul, through overhauling the entire education systems to prepare for the coming technological revolution.

·        Promoting equality and social justice in a changing world.

·        Promoting equal access to opportunities.

·        Improving data sources to measure labor equality.