Deregulation involves removing government laws and regulations in certain markets to increase competition. In countries like the United States, deregulation of the financial industry allowed large banks like Citibank to emerge and offshore jobs to lower costs abroad, even highly skilled jobs. As regulations decreased, businesses, consumers, and homebuyers took on more debt until the housing market could no longer sustain it.
5. In the United States, for instance, giant multinational
financial supermarkets
such as Citibank quickly emerged.
6. The search for greater
efficiencies prompts many
employers to offshore
(export jobs to lower-cost
locations abroad). Many
employers offshore even
highly skilled jobs such as
sales managers, general
managers, and HR
managers.
7. As economies boomed, more businesses and
consumers went deeply into debt. Homebuyers
bought homes, often with little money down. Banks
freely lent money to developers to build more homes
8. Wellhave you had experiences how
easy to lend money from the banks?
Next, lets try to understand how the
nature of work changes in globalization!