Impact Of Globalization On The United States

Globalization has, for better or worse, altered the economic arena for every country in the world. For many less developed countries, globalization has leveled the playing field so that their economies can compete with the larger, more developed ones such as the United States and other large western economies. For instance, technical engineers in India and China are now just as qualified as engineers in America, but at half the cost. The once large and prosperous service sector in the United States as well as telemarketing services have largely been sourced to India as a large exodus of American multinational corporations find cheaper workers who deliver comparable quality. This then seems to be the essence of globalization - businesses

It has become increasing undeniable that the process of globalization is present, and a strong force in the international market. “Globalization”, according to the Merriam-Webster dictionary, is defined as, “ the development of an increasingly global economy especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”. Before the start of the 1990’s, the United States had little competition in the international marketplace, and was as strong as ever. Globalization has opened the international market to cheap land and labor outside the United States. Corporations and businesses have outsourced many jobs from the United States labor markets, at the expense of United States labor. One of the biggest questions facing America today is if it is ready for Globalization. I believe that we are not ready for a variety of reasons, but there are a few that stand out in my mind. The top factors concerning the U.S. are ineffective nature of Congress, U.S. national debt, and overseas outsourcing.

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

Contemporary globalization is an exceptionally multifaceted phenomenon and can be defined as "an intensification of cross-national cultural, economic, political, social and technological interactions that lead to the establishment of transnational structures and the global integration of cultural, economic, environmental, political and social processes on global, supranational, national, regional and local levels" (Huynen, Martens & Hilderink, 2005). The very nature of the American society has experienced insightful and compound changes due to globalization that has brought with it both new opportunities and risks. Similarly, the impacts of globalization

The phenomenon has created major suffering for many American and as this outsourcing continues to spread, Americans will demand action (R. Hira 2008, p-95). The book also adds that scholars Ralph Goory and William Baumol have shown that even when the basic model of the economics are used trade does not make both the trading partners better off. The trading in one country will have a negative impact while trading in other country will have a positive impact. The country with negative impact will definitely affect its economy. United States economy being the world’s largest economy; historically, it has maintained a stable GDP growth, a low unemployment rate, a high level of research and capital investment funded by both national, and because of increasing saving rates, increasingly by foreign investors. But offshore outsourcing has increased the unemployment rate dramatically in the decade. And so the economy worsened day by day.

The world we live in today is going through enormous changes in economics, technology, culture, politics, etc. The effects of the changes are not so clear, since it is hard to predict how each sector would affect the other and how society will be affected. However, analyzing past and present occurrences provides some information for experts to interpret society’s reaction in the future to different transformations. Globalization can be seen as a process in which societies around the world come together and expand through the combination of different forces. This paper will explore the effects of globalization on US companies, US society and economy, and the implications for other countries in the post-industrial world.

The effects of globalization can easily be defined and shown by the death of small town culture in and around the southern states. The term, globalization, is essentially a term used to make an ugly truth seem appealing and thought-provoking. When in actuality, it can be more easily defined and understood as cheap labor not burdened by employee safety and fare wages. The movement of labor off-shore from the United States was done for one reason , labor cost. This move was especially favorable for large corporations because mostly in Asia there is no OSHA, no EPA, and certainly no Union influence.

Globalization is taking its toll on the American work force. “In the 1980’s, globalization hurt blue-collar America,” (Steven Greenhouse, 2008) this was due to the vast amount of imported steel, autos, machinery, and electronics. It is now the twenty-first century. Globalization is not only affecting blue-collar workers, but has extended its reach to white-collar workers. Jobs are being lost in America as corporations move production, and/or outsource jobs to low-wage producing countries. It is estimated over 7.9 million jobs have been lost this year, and some of these jobs will never return. This is corporation’s philosophy on how to cut cost, which in-turn translates into a larger profit margin. Because of these extensive job losses, the

However, jobs are transferred to those lower labor cost countries which have access to global markets and can export cheap goods. Friedman explains, “Once people get a taste for whatever you want to call it—economic independence, a better lifestyle, and a better life for their child or children—they grab on to that and don’t want to give it up” ( Friedman 170 ). People in developing countries are benefitting from the economic prosperity. Their income is going up, their living standard is rising, and they have full confidence in the future. Would they like to give up what they own now? Certainly not. Similarly, Marantz is also aware of the rise of income that globalization realizes. “He impressed coworkers with his American accent, and when he got his first paycheck, he tasted the liberating power of disposable income” ( Marantz 289 ). Employees can earn around five thousand dollars per year, which is more than five times the per-capita income. Therefore, they are able to dispose their income freely and consume whatever they want. Both Friedman and Marantz mention the economical benefits that globalization brings about, but they neglect the negative effects globalization exerts on developed countries. People in developed countries like the united states are confronting more pressure in finding jobs, due to the relatively lower labor cost in developing countries and the currency exchange rate, which make people in those countries more competitive for the job. Even if they have jobs now, they are still at the risk of dismissal Globalization promotes global economic growth, creates jobs for some countries, and lowers prices for consumers, because the opportunity cost for each products decreases by means of collaboration between countries, but it doesn't match the decline of wages among some people and will not offset the

Does globalization only have adverse effects on large corporations? In theory this reading should provide the reder with the information that Globalization is not just a concept that effects large corporations, but also small businesses along with their employees. Through the following, effects such as, outsourcing, telecommunications, and developments in new technologies.

Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. The United States loses about 230,000 jobs a year due to outsourcing and new jobs are not crated that frequently or rapidly, therefore local unemployment rises. At the same time, the US also loses skills due to outsourcing. Developing countries also experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class is exploited by newly formed elite. This is called "Global stratification". Consequences may be disastrous not only for the country

For decades, American citizens have been complaining about how outsourcing has ruined their lives and that it is only going to harm America and its economy. Unfortunately, jobs are going to be lost and the unemployment rate may rise due to globalization. However, the benefits of globalization are infinite. People in other parts of the world will achieve a greater life than they ever thought possible due to the factories built in their countries. Due to the poverty in third world countries, these factories will provide a great source of income for the citizens of third world countries. People in America will benefit from the stable economy; prices of America’s goods will stay relatively the same. Despite the misinformed Americans opinions

“The globalized production of IT hardware—that is, the offshoring of computer-related manufacturing, such as Dell computer factories in China—reduced the prices of computer and telecommunications equipment by 10%-30%” (Parry, 2004). The result of such actions contributed to the growth and productivity of IT within the US economy.There is much debate over globalization and its impact on the economy, but often times the increased jobs outsourced often bring more local jobs as well. The difference is in the types of jobs and how certain labor trades have seen a decline in job availability while others have skyrocketed. “Between 1991 and 2001, U.S.-based multinationals created close to 3 million jobs overseas. But they also created 5-1/2 million jobs inside the U.S.—an increase of about 30% in payrolls” (Parry, 2004).This is a result of the management, R&D, logistics and international IT personnel required stateside when a job is created overseas. It is a false presumption to assume that because a company outsources overseas that it does not create more jobs stateside.

The effects of globalization around the world varies, some countries suffer from it while others gain. Because of globalization people are more accepting of other cultures, we see how people migrate to different places most of the time is either to get education, or to find jobs and support their family. Not only do the family benefit from remittances but the community may benefit from it as well. People leave their home country but they still keep their culture alive. They do not forget where they come from or their loved ones in most cases. Some people might argue that globalization has helped people from all over the world, but that is not what we have seen from globalization. Most of the time, when Americans call HP customer service they will notice that the person on the other side of the phone may have an accent. Some will say that in most cases the accent is from India or any Asian country. This shows us how globalization has helped Asians gain jobs, especially those who can able to speak and understand several languages. Companies will transfer or relocate their customer service agency abroad and find people who speak several languages to do the work instead of having the agency in the United States and employing Americans. This may be a reason why so many people are against companies that move abroad, not only are people in the United States unemployed but people in the other countries do not get the wages they deserve or need to sustain themselves or families. The reason companies may move abroad can be that the company does not want to pay high taxes or they do not want to pay high wages. Companies like Nike, have employed

This unfortunate outcome of globalization is something that was expressed heavily during the recent 2016 election between Hillary Clinton and Donald Trump (as well as early on in his campaign), and continues to flourish after the regrettable inauguration of the latter. The bulk of Trump’s campaign was an attempt to pit the American people against others (as well as themselves with the racist ideologies he proposes). Trump claimed that the outsourcing of jobs from companies in the United States to other countries (according to him, mainly Mexico) was America’s biggest problem, even though his own and his family’s companies do the same thing on a large scale without fault. Though they are American companies that are doing the outsourcing and, therefore, the process that Trump and his supporters want to be destroyed, the blame is constantly put on the country/countries that receive the business, even though their people need jobs too. Continuously calling out Mexico for “stealing our jobs” (and