Focusing on the Emerging Middle Class: A Market Strategy for Multinational Corporations

Since companies are moving jobs to China and India, their economy benefits a lot by having more opportunity in searching for jobs while middle class Americans suffer from lack of jobs. In the article “The Rise of the Middle Class-Just Not Ours” by Gillian Tett, he says that in the past decade, “Brazil, Russia, India, and China are thriving as jobs flow into their counties from the West and their education and infrastructure improve” (Gillian 1). He states that due to corporations investing in other countries, they are gaining better education along with infrastructure as their income rises and lifestyle improves. Corporations are focusing more in different countries rather than America because in some countries, they have advanced in education and in technology whereas the American people are lacking it a bit. Corporations are uplifting middle class in different countries while they are destroying the middle class in

Multinational corporations are organizations that work in numerous nations. They likewise help to keep up the worldwide predominance of the Industrialized Nations just by working together sustaining universal stratification. MNC may have a few premiums like overseeing mining operations in a few nations, fabricating merchandise in others, and market its items around the world. The essential recipients are dependably the Industrialized countries, particularly the one in which the multinational partnership has its reality home office. In their quest for benefits, the multinational corporations require helpful power elites at all industrialized countries. The MNC dependably require positive business atmosphere in type of low

The business environment that influences companies' activity determines them to search for new development strategies intended to help them increase their business. In most cases, companies expand their business on international level. This is because the numerous growth opportunities provided by markets they have not addressed before can help them reduce their costs by outsourcing some of their processes and activities to cheaper destinations, or to increase their incomes by addressing new markets and new customer segments. The number of companies that outsource their production process to countries in Asia, Africa, Eastern Europe that are able to provide skilled workforce at lower costs is increasing. The scope of this international operation can be observed in the significant price reductions in product categories like electronics, clothing, and numerous types of services.

When a company relies on a production facility that is not local to their home land, they lose the majority of the control of their operations. Many of the developing countries that are chosen to outsource are underdeveloped which comes with a great deal of instability. When a country is not developed, although labor costs are low, the education level, physical and

I will first talk about the purpose of having operations done in another country. American companies can decide to move their companies overseas for a few reasons. One reason is that they can hire workers at low wages, for example, in China they can pay as little as 30 cents and hour whereas here they would have to pay employees minimum wage.1 Another reason is because the company would not have to pay employee benefits, such as vacation time sick days, and health insurance.1 A third reason would be that they would not have to follow safety and environmental regulations.1 The last reason would be that they would not have to pay foreign taxes

* With so many large markets available, there is tons of revenue to be made overseas.

a. MNEs often get accused for doing outsource in LDC. In less developed country, many workers and natural resources have been exploited to get huge amount of profit. The MNEs do not care about the country and its development, only thinking how to make higher profit. Since they do not care about the less developed country, they will disadvantage the LDC as the host country and make higher profit for themselves. As a result, the LDC country will suffer and lead them to great poverty.

Globalization has enhanced speedy economic growth in China. It gives the countries that embrace the phenomenon opportunities for economic growth through increased access to foreign capital, modern technologies, new information and technical skills. Mike Collins in his article, The Pros and Cons of Globalization, points that globalization is an approach aimed at raising the social, economic and political status of both the poor and rich states through a global strategy. The approach, however, has come with its drawbacks that cannot go unnoticed. The most evident negative effect is that it has led to the exploitation of the poor, subjecting them to more poverty conditions, while the rich accumulate more wealth than ever before.

Here, researchers looked at data in global income inequality over the past 200 years. By looking at the evidence, Oatley comes to the conclusion that globalization has indeed resulted in the increasing inequality gap with increasing wealth for the rich, which in turn has resulted in the increasing poverty for the poor. According to Oatley, globalization has also transformed social inequality from simply being a local problem (state based) to being an international one. This is to say that wealth is globally being accumulated by the wealthy from the poor. Here, the net effect of globalization appears to be bad. This is not only because of the fact that inequality is on the increase, but also because it has significant impacts on different nations in general. This is to say that globalization leaves various third world countries at the mercy of other wealthy nations. For instance, although the global south (developing and third world countries) are dependent on the developed nations, they are also the producers of raw material and even labor. However, raw materials are sold cheaply to the developed nations, where they are processed and refined and then re-sold at high profit margins. While the developing nations and other third world countries will indeed see some benefits here, it is

The article, The Great Unraveling of Globalization by the Washington Post, discusses how many companies and organizations have become victims of globalization. Companies have set up stores and factories in regions such as: China, Russia, India, Brazil, Thailand and more, thinking that those locations would help them achieved the biggest GDP gains (Washington Post, 2015). Globalization was supposed to aid both the rich and the poor countries alike. As the article says, “it was supposed to act like a rising tide…the middle class would swell…more factories would be needed to meet the demand, further rising local standards of living and handing the largest non-domestic companies a vast and enthusiastic new customer base” (Washington Post, 2015). However,

Multinational corporations contribute greatly to the international stratification of the world. Operating within many national borders multinational corporations exploit the least industrialized nations of the world. The corporations may operate several industries in many nations with all profits flowing into the most industrialized nations. By selling the ability to have more industry to poor nation without that nation having to finance it have made multinational corporations the landlords of industry around the world. At times during Americas history governments were overthrown or dictators were installed for the best interests of these corporations and not the nations they were located in. Power and profit are the cornerstones of multinational corporations even at the expense

Countries like China and Indian are no longer under-developed countries. GDP and per capita income of these countries is increasing exponentially that results in more purchasing power. The definition of Middle class is changing because of the increase in income levels. According to the article “3 great forces changing China’s consumer market”, it is predicted that China’s economy is projected to expand to $6.6 trillion by 2020, even though it is currently struggling. Three important factors are cited as the primary reasons for this transition

Some opposing arguments are that economic globalization, on the name of multinational companies, exploit human and natural resources of developing countries, and create income inequality across countries (Adam, 2008, Lee, 2006). The argument is that while a small segment of population benefits from the entrance of global market, the majority of working class people remain trapped in national or local labour markets with limited options. Economic globalization in this way has created a huge class polarization in the labour market. The development of a new international division of labour and the increasing inflow of migration has had great impact on race and gender relations in the workforce. Moreover, neo-liberalism as a powerful dynamic of

Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also

Multinational business enterprises have had a big impact on the global economy over the years because of their