International labour market

Chinese controlled firms employed 141000 Americans at the end of last year, according to new research announced on Tuesday. The number increased 46% over the last year. It is more common to see Chinese are employed by multinational companies which are mostly controlled by European and Americans. The phenomenon of more Americans employed by Chinese companies shows that many Chinese companies have been making a process to enter the international market. Moreover, foreign people are seeing the opportunities of these Chinese companies and willing to participate in their international expansion.

When the companies from the developing countries employ workers from a global scale, some skilful and well-educated workers from the developed countries are moving towards emerging markets. This will increase the labour market competition in emerging markets. This will force the original workers in the market to improve their skills and knowledge further in order to compete with their new competitors from the developed world. Additionally, when workers from all around the world are working together, this will encourage more exchange of information, knowledge, skills among workers with different backgrounds.  Such process can lead to more innovation and productivity improvement happening in the emerging market. However, such labour movement can cause some local social issues. For example, the rising populism is partially caused by the increasing competition from labours from other countries. Such situation may also occur in the emerging markets, but it is not necessarily as bad as what occurs in the developed world. Many labours in the emerging market have relatively lower incomes, while the labours from the developed countries usually occupy the positions with higher incomes; therefore, a direct competition may not be formed immediately in the emerging market.