Summarize how currency exchange and labor rates impact trade Essay

Summarize how currency exchange and labor rates impact trade - Essay Example However, with the global meltdown of the economy, it became more expensive as well as uncertain for these companies to outsource their businesses for fear of incurring more losses, therefore further crushing the economies that relied almost heavily on the outsourcing business, such as India and China (Ito, 1996). Human capital refers to the collection of knowledge, competencies, personality and social attributes inclusive of creativity providing an individual the ability to perform labor and as a result produce an economic value. As such, globalization of human capital is in reference to the fact that these factors acquired a global perspective. Furthermore, the emergence of new technologies advance the nature of human capital even the more. Some of the global trends of human capital currently observed in most economies include adoption of technology to handle most, if not all of the business problems encountered on a daily basis. This means that technology is far replacing traditional trends of human capital. More work is digitalized and as such, providing more effeciency as well as convenience in handling of tasks (Stucka,