What Is the Relationship Between Globalization and Rationalization

question 86

Essay

What is the relationship between globalization and rationalization?

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Definitions:

Efficiency Wages

Wages set by employers above the market equilibrium to increase productivity and reduce employee turnover.

Natural Rate

Refers often to the natural rate of unemployment where the economy is in equilibrium, or the natural rate of interest that corresponds to the equilibrium in the loanable funds market.

Structural Unemployment

Unemployment that stems from changes in industrial structures, primarily driven by technological progress, rather than by shifts in supply or demand levels.

Frictional Unemployment

Frictional unemployment is a form of temporary unemployment that occurs when workers are transitioning between jobs, often due to personal choices or changing economic conditions.