Essay on Reconstituting Local Manufacturing

The State University of New York (2014) provides and clear and accurate description of globalization:

Mohr, A. (2015). The Effects of Economic Globalization on Developing Countries. Retrieved from Chron: http://smallbusiness.chron.com/effects-economic-globalization-developing-countries-3906.html

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).

Supporters of Transnational Corporations (TNC) say that their operation in “third world” country, also known as a “developing country”, benefits both the home country (where the TNC is based) and the host country (where they operate). TNCs construct facilities, make infrastructure improvements, and employ local people, all activities that should improve the economy of a host nation. Many host nations hope that there will be a multiplier effect from the direct investment by a transnational corporation, known as foreign direct investment, or FDI. That multiplier is expected to ripple across all other sectors of their economy – benefitting everyone.

Edward Glaeser, an economics professor at Harvard, is a scholar of the economy of cities and their various problems and regularly writes about this in his famous blog of The New York Times Economix . In The Triumph of cities , it offers a valuable insight into the advantages of large cities and makes a thorough and rigorous analysis of the strategies of some successful cities that can serve as an example for the development of its strategic plan outlining.

The primary economic winner in recent times from McDonald’s globalisation process has been East Asia, as in 1975 when McDonald’s opened it first restaurant in Hong Kong, it brought with it a high standard of professional service and the first restaurant to continually offer a clean eating environment, which customers came to demand from all restaurants later. Another winner of the globalisation process, are the third world workers employed by transnational corporations. Although the western world sees sweatshops as immoral and unethical, the labourers who work in these places are often being paid a higher wage than most of their fellow citizens. This means through the economic globalisation process and cross border corporations, workers in developing countries have the opportunities to survive and beat the poverty cycle.

In many ways, Bill McKibben's work of non-fiction, Deep Economy, offers an antithesis to globalization. Whereas the founding principle of globalization is to make processes for commerce international, thereby reducing the world to a single 'global village', McKibben largely advocates the opposite approach within this manuscript: localization. In fact, the author implicitly and explicitly states that globalization is producing a number of noxious effects that can only be rectified by localization. The international and national economies that globalization is based upon is not only slowly draining monetary resources, but also the very fostering of globalization via remote communication (such as the internet or wireless devices) is actually serving to alienate people from those who they are closet to their neighbors. Within Deep Economy, however, the author posits the viewpoint that a monetary approach based on local economics can not only conserve what remaining natural, cheap sources of energy that are still left on the planet, but also create a true sense of community that can empower and ultimately bring fulfillment to the lives of the people who participate in it.

In the case study we can see that the authors talk about the importance of innovation when it comes to the long-term success of every product company. By reading the article one gets an understanding that the authors are asking executives of any product company should not view manufacturing as a cost center and by shifting their manufacturing units offshore they are hindering a company’s capacity to innovate. In the end the authors give us different methods that a company can use to better improve their product line without shifting their manufacturing bases offshore and a way the government can help by providing policy incentives for the

The local businesses tapping into more markets with the help of Globalization. The world is changing, we are living longer than before, capita income has gone up, advance in science and technology and change of poverty due to globalization taking part of our lives (Bildt). Employment and economic growth are recovering almost everywhere. “Since 1990, the share of people living in extreme poverty in the developing world has fallen from 47% to 14%, and child mortality -- a critical indicator -- has been halved” (Bildt). It all depends on what area you live that is changing because of the consumers believe certain countries make the best product.

Edward Glaeser has written an informative book that unveils its optimistic view of the city: The Triumph of Cities. Glaeser, a professor of economics at Harvard University, is a brilliant economist who is credited with the recent revitalization of the field of urban economy. So far could their ideas through numerous but somewhat scattered newspaper articles and academic papers whose reading required prior training and considerable effort. Instead, the book is a simple, comprehensive and documented essay on multiple aspects of the city as its origin, development, operation, crisis, disappearance and revitalization.

Globalization has created a paradigm shift in the ways by which firms conduct their business. The convergence of world economies has minimized-and in some cases eliminated-both legislative and geographical barriers to international production and sale of goods and services. The flip-side of this process is the increased competition for world markets created especially by the threat of multinational firms to local firms (Garry & Litan, 1998). Local firms must find ways to compete and survive the threat of take-over and crowding out of the market by multinational producers who enjoy favorable economies of scale. This is effectively achieved by ways of in themselves creating this very economy of scale; expanding business operations helps them lower the marginal cost of production allowing them to therefore provide a favorable pricing policy within the market.

Globalization is big factor in how we should be treating the planet, to better improve everyday life on earth. Globalization is the interaction of people on earth through how we treat it and the flow of money, ideas and culture [Suny Levin Institute, 2016]. We are no longer connected all together through social events, it’s said that we are connected, connected by air, but it doesn't seem like it anymore. The media stresses that the economy is endanger, and the

“Globalization is not just one impact of the new technologies that are reshaping the economies of the third millennium” (Thurow 19-31). When speaking of globalization, most people will not have a complete understanding as of what it actually means or what aspects of the world it affects. Globalization promotes free trade and creates jobs. The capital markets attract investors, resort cheap labor, and leads to job losses in some areas of higher wage. While all of this is happening, the world economy is being effected: economically, culturally, socially, and politically.

“Globalization is today's reality. Like it or not, the move to a world economy is a fact of life. At some point in the 1990s the process achieved critical mass and people started to sit up and take notice. Many were apprehensive.

Going global has become an obvious choice for multinational companies. But spreading across the globe is not a secret to success or revenue generation, on itself. The opportunities in international markets have shown significant growth and potential for multinational companies. The capital, technology and skills of multinational companies invested in the local markets have created a good economic situation in the host countries. The developing countries have benefitted from the brand’s new standards, quality goods and low prices. The host country also benefits from either positive or neutral employment options. Foreign direct investment is having substantial impact on different economies in different ways. But nevertheless all these benefits in the developing markets are very small when compared to the potential market it offers to the international companies. According to Keeler (2015), multinational companies have been shifting their focus extensively towards developed countries as well. The key with the developed countries is their productivity and technological developments. The increase is from half to two-thirds when compared to 2013. Multinational companies across the globe have increased productivity and have brought into good practices in the food retail industry both in the developed and developing countries. But the truth is no company has been able to establish themselves as a global dominator in the market sector. In the