Other Side Of Outsourcing, Directed By Kenneth Levis

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. According to economic and political writer Doug Bandow, “Some critics of globalization have contended that the process has helped the rich and hurt the poor. However, the best research indicates that this is accurate: ‘Poverty is falling rapidly in those poor countries that are integrating into the global economy.”. In both documentaries “The True Cost” and “Living on One Dollar” we can see how companies exploit their employees for consumer benefit, as well as the social and economic inequalities that are attached with globalization.

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

Globalization is interpreted in many complex ways due to how confusing it can be for people to understand. Thomas Friedman wrote the article, “Globalization: The Super Story,” to explain how the three balances are the foundation of globalization. In Laurence Rothenberg’s article, “Globalization 101: The Three Tensions of Globalization,” Rothenberg explains what the three tensions are and how they have affected the world. By analyzing Friedman’s and Rothenberg’s articles and how globalization affects culture identity, effects will be brought to a better understanding.

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.

Globalization is effectively removing the national boundaries for economic purposes. National boundaries are becoming penetrable for goods and capital because of cheap labor. (Shaw, 2016, p.186). Globalization has both advantages and disadvantages. By transferring the domestic manufacturing jobs to foreign countries such as Mexico or in Asia, Americans companies are bringing cheaper consumer goods. It creates the unemployment’s also the foreign employees are getting lower-wages. (Riordan, M., 2016, NY Times).

Ehrenreich's ideas about outsourcing in the article “Your Local News- Dateline Delhi” help to understand Zakarias statement in the article, “The Rise of the Rest” about “the rise of the rest” which means that the rest of the world is catching up with the United States on a economic scale because the reason the U.S. is outsourcing jobs, is because other countries are growing to become more equipped to handle the jobs. Ehrenreich talks about how outsourcing is such an awful thing because Americans are losing their jobs. However Zakaria talks about how outsourcing is helping the entire world because it allows nations to increase their standard of living.

Outsourcing, or the practice of Corporations expanding their influence, and labor force to foreign countries needs to stop. As it causes the decline of developed nations labor forces, does nothing to fix inequality in underdeveloped nations, has adverse affects on the economies of developed nations, and outsourcing allows corporations to cause extensive harm the the world, and it’s enviornment. If the practice of globalization were ended, it would improve the lives of many people in developed nations, the policies that affect them, and ultimately the world.

Globalization has been an integral part of India’s progress. It has opened up new avenues for growth.

In Frida Kahlo’s, “Self Portrait Between the Borderline of Mexico and the United States”, the United States and Mexico are clearly in very different stages of industrialization. Seeing the cables connecting the industrial U.S and less developed Mexico shows how technology and business are connecting countries. This portrait was created over eighty years ago, but today there are even more ways to reach out to foreign countries. Some corporations and companies are reaching out to developing countries and using their labor force instead of hiring a domestic source for the job. Outsourcing is when a company receives goods or services from a foreign supplier rather than a domestic one. There are numerous reasons for companies to outsource jobs and

Global Sourcing has been defined has companies practicing offshoring and outsourcing. Labor Market under Globalization and the other readings we have covered in class so far has emphasized that the primary factor different companies engaged in global sourcing was due to low labor cost. Although low labor cost is very important factor the Global sourcing reading also informs that there are factors such as facilities and infrastructure, availability of resources, easy access to market and consumers and the political conditions which a company has to consider. At the end of the reading the concept of “Race to the Bottom” was very interesting. This concept informs us how large companies try their best to reduce their expenditure and increase profit by trying to reach countries with low labor cost. In the other hand government of different countries are forced to adopt new polices, reduce taxes and weaken economic polices in order for companies to invest in their country. The opening of different companies will provide people with jobs which are very labor intensive with deteriorating working

Friedman in his novel, when discussing triple convergence, lists Russia and India as members of the convergence. He details the story of out sourcing manufacturing with the production of a Boeing jet parts that are set first to Russia then India. This creates a quicker product development along with cheaper results. India is a prime land for out sourcing jobs for many reasons. One being, simply, the large population meaning fewer jobs available; if the Indian citizens are more desperate for an income, then they will be willing to work for a smaller salary. A controversial question must be discussed when the topic of out sourcing is brought up. Friedman interviews a political expert about whether India is being exploited or if these opportunities would have even occurred for the citizens if it were not for globalization. Also, he discusses whether it is worth the social anger of state side citizens loosing job opportunities to foreign workers. Due to globalization and out sourcing, countries and people are having problems with identity when their cultures are being spread thin on the flattened world. Friedman states that the “Lines have been blurred” between consumer, employee, employer, and other identity titles in the work

The famous cheerleader for globalization and author, Thomas Friedman, in his book The World is Flat argues that globalization is proceeding briskly because of the “flattening of the world”. What he means is that with the advent of information technology and seamless communications, any country in the world that has a pool of educated workers can aspire to jump on to the globalization bandwagon and benefit from the erasing of entry barriers. The point here is that countries like India have successfully leveraged the power of IT and communications to leapfrog the intermediate stage of manufacturing power that is required for economies to become fully fledged powerhouses.

Globalization has a positive side as well. Supporters of globalization fight that it can enhance this world a spot to live and will deal with some significant arranged issues like unemployment and desperation. The fringe are getting a chance to appear on the planet market.

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

The transmutations of technology and capital, work together to create a new globalized and interconnected world. (Castell, 1998) A technological revolution involving the creation of computerized network of communication, transportation and exchange is the presupposition of a globalized economy, along with the extension of a world capitalist market system that is absorbing evermore areas of the world and spheres of production , exchange and consumption. The technological revolution presupposes global computerized networks and the free movement of goods, information and people across national boundaries. Hence the internet and global computer networks make globalization possible, by producing a technological infrastructure for the global economy. Globalization has an effect on employment patterns worldwide. It has contributed to a great deal of outsourcing which is one of the greatest organizational and industry structure shifts that changes the way business operates (Drucker, 1998). Globalization is also seen as changing organizational structures where expenses can move up or down as the business climate dictates (Garr, 2001). For employees the trend toward outsourcing has been thought to result in a loss of fixed employment opportunities as a consequence of firms seeking to use cheap labor from countries like China, Mexico and even Africa. The globalized economies have