Answer to Question #234383 in Microeconomics for retha

Question

/ report on the impact of the South African economy’s global integration on supply and demand mismatches in the labour market, consequently discussing what this entails for wage inequality levels within the country. Government has asked that you focus on the following aspects in your essay/report: ▪ 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? ▪ As 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? 

Answer 1

Globalization has created more chances for the high skilled workers. This comes as the present devices call for the experience knowledge to manage some processes. On the other hand, the low-skilled worker has been adversely affected at some areas as there are other ground-work responsibility that are meant for the such group which have been assigned to other devices.

Despite products being natural resources, technology is available to fasten the production process. In this case, South Africa is ready to make a shift to more technological driven production processes.

Globalization tends to mismatch demand and supply for labor. This is because when people see firms concentrating on the technological procedures, this makes them avoid such firms while the employers tend to think that labor demand is low.