| Summary: | Globalization has important effects on world trade and economy through liberalization. The first one, is about the increase in substitution options, another one is the revitalization of competition, and the last effect is about the flexibility of labour market. The flexible labour market effects especially the unskilled labour market. The curve of unskilled labour demand in getting more flexible due to the foreign trade with countries where labour supply in higher. This kind of flexibility results in the decrease of the wages and increase of the unemployment. On the other hand, the flexibility of the labour market, while stimulating economic growth, strengthens the economies against external randoms. Therefore, while globalization causes advantages for labour in direct ratio with economic growth, it causes disadvantages for unskilled workers’ employment
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