Globalization
The issue reaches its broadest scope in the controversies about globalization, which is often interpreted as a euphemism for the expansion of world trade based on absolute advantage. This would mean that countries specialise in the work they can do at the lowest cost. Critics however allege that international specialisation cannot be explained sufficiently in terms of "the work nations do best", rather this specialisation is guided more by commercial criteria, which favour some countries over others.
The OECD recently advised (28 June 2005) that:
"Efficient policies to encourage employment and combat unemployment are essential if countries are to reap the full benefits of globalization and avoid a backlash against open trade... Job losses in some sectors, along with new job opportunities in other sectors, are an inevitable accompaniment of the process of globalization... The challenge is to ensure that the adjustment process involved in matching available workers with new job openings works as smoothly as possible."
Read more about this topic: Division Of Labour