Globalization And Its Impact On The American Industry

International relations is a topic that is constantly changing and can be very fragile. In the article, “Your Local News- Dateline Delhi” Barbara Ehrenreich, a respected journalist, shares her personal insights into the outsourcing of American jobs to foreign lands. Ehrenreich’s cynical attitude, use of dry humor, and rhetorical questions makes this daunting subject easier to take in. Fareed Zakaria, a well-known author, explains the globalized world and where outsourcing fits, in an excerpt from his book, The Post-American World. Zakaria looks back in history to show the reader how the world came to this “globalizing moment”, then he hypothesizes the future of the global economy by piecing together all of the elements. Ehrenreich shows

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.

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.

As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.

As with so many global trends, there is significant disagreement over the implications of global competition in services for American prosperity and competitiveness. Many people are pessimistic about the impact of offshore outsourcing at a time when American workers are having more difficulty finding employment, since it creates personal hardships, reduces the tax base and increases demands on our safety nets. Competitors from lower-wage nations, it is feared, could put

With the addition of China into the globalization world, the world supply of labor far exceeds the demand. With several billion new workers in the global supply of labor, companies may shop for labor and relocate to wherever it is the cheapest. Laborers in foreign countries are willing do the same work that a high paid employee would do for less. If American corporations are to compete in the new global economy, they will have to

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.

There are multiple reasons why structural power has declined, times have changed and laws have changed accordingly. Jennifer Jihye Chun touches on a few of these reasons but, focuses on two main reasons for these shifts. First is the transnational outsourcing of labor. The workforce no longer has the same structural power they had in the days of assembly lines most jobs suffering from unfair labor practices are unskilled service jobs and are easily replaced. This is because “capitalists relocate production to lower-waged regions to weaken organized labor…” (Chun: 10). Though Chun does not make it a main point she mentions that the laws in place are pro employer/business owner and “the recognition that contested struggles over ‘rule of law’ directly shape the expression and efficacy of workers’ associational power.”(Chun: 12). Employers are allowed to bypass workers because it is “rule of law”. The second main reason Chun mentions is based on the classification of an employee and the employer-employee relationship. There are more nontraditional employee opportunity that blur the line of what an employee should expect. These jobs include, subcontracting jobs, independent contracting jobs, and temporary employment jobs. These blurred line affect benefits, rights to bargain and rights to be represented, to name a few. People in service jobs do not have as much structural power because they have fear of being replaced when the employers need to be the ones that fear a strike.

Generally, globalism has been attributed to better worldwide communication, advanced technological development, and a higher international standard of living, and rightfully so. However, with all these new worldwide advantages comes a new type of human exploitation. Many companies, specifically American ones, have been quick to take advantage of the cheap and dangerous labor available in most of the undeveloped world. Countries who are working through their period of Industrialization are being siphoned off and used to maintain America’s economy, while their developing country reaps no reward from the low paying, dehumanizing jobs that American companies offer their low class workers. This type of inhumane job outsourcing can only be compared

Globalization, defined as “a process that aims to expand business operations on a worldwide level, and was precipitated by the facilitation of global communications due to technological advancements, and socioeconomic, political and environmental developments” has been around for ages. However, it is a force that is becoming increasing more relevant in today’s world. In layman’s terms, globalism is the merging or “melting” of individual perspectives and markets into a more global market. As of recently, society has been obsessed with studying globalization. However, the conversation is rarely economical. Globalization is typically looked at as a social or cultural force that is shaping and connecting the world. This is scene in clothing styles, human travel, and popular culture that has become increasingly similar across nations. That sentiment isn’t wrong-globalization does have a cultural side, but many people are missing the economic impacts that this new world is facing. In fact, the economic implications of globalization and how governments legislate to control them leads to significant opportunity, but also huge threat globally.

As firms continued to profit from greater access to international outlets, they became the “winners” of globalization while unemployment rates rise and workers are faced with daunting layoffs and displacement. Many blue-collar workers, like David Quinn, were disproportional affected

The purpose of this paper is to analyze and come up with a reasonable conclusion on the effects of outsourcing in America. From overworking, to a decline in the manufacturing sector, a high wealth gap, and finally the contribution of corporate lobbying are prime examples of the by-product that were created by outsourcing. Although free trade is the root of the problem, outsourcing is the most prevalent issue that it has created. Since free trade is now a standard and cannot be eliminated we will look into how outsourcing, since it can still be controlled, has affected America.

Foreign trade, historically believed to be key in harming United States’ economy is becoming increasingly less threatening than robots and advanced technology in the workplace. This is not to say that the United States has not lost jobs to foreign trade, rather that mechanization of labor has recently taken a majority of jobs previously held by citizens. Despite this, many still discuss foreign trade as the main risk of global economic downfall, because it is relatively easy to “demonize the foreigner”, and more difficult to “demonize what everyone sees as technical progress”.The most at risk sector, manufacturing, has seen a 5 million job drop since 2000. In fact, a recent study determined that roughly 87% of manufacturing job losses between

In today’s world, with a few notable exceptions, nearly everyone in every region of the world has access to the same products, information and services. A long-distance relationship is no longer so distant, since each party involved in the relationship can communicate through Skype, Facebook or through any of the vast amount of social media available. A person in Easter Island, one of the most remote inhabited islands in the world, can go to the other side of the world and travel to Canada. An economic crisis in Argentina could affect the economic landscape in Brazil. A person in Chile or Peru can buy an Abercrombie and Fitch t-shirt because this transnational corporation decided to expand its market to developing countries, or as you might prefer, to emerging economies in South America. Although many of these examples might be trivial, these are the consequences of globalization.