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Global Strafication

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Global Stratification In today’s society we depend on companies worldwide to provide goods and services to satisfy our needs and wants. These companies worldwide are called multination company which is defined as a company that has one head office but has operations in more than one country. These operations deliver goods and services to many different areas. “Although this can lead to great sales and provide the services around the world, this can lead to what is called global stratification” (Ivancevich, J. M., & Baker, J. C. 1970). Global stratification is defined as the inequality amongst countries in the world. The differences in rich and poor countries and the patterns of global stratification are imperialism, world system, culture of poverty and dependency theories. “Each country that is stricken with poverty will be becoming rich as the United States is becoming poor” (Hira, R. 2004). More jobs are being sent overseas, although a company such as Nike has a world headquarters in Washington State, there are many other headquarters in other countries such as; Canada, Austria, Japan, and Mexico. When the company decided to branch off and send jobs elsewhere, this leaves the United States’ workers out of jobs, which then will cause loss of homes, and ability to pay their bills and take care of their families. Having no job means the unemployment rate has skyrocketed in the past several years. The positive effect this has no the United States is that the price of merchandise will be cheaper, due to the fact materials that are used to make the product is cheap, but if made in the United States the price will rise for sales, because the materials is higher quality. When we look at the government having the company out of the nation will be cheaper on the economy. Nike is a huge company in which would need at a bailout from the government if something negative would affect the company. “This even means unemployment bailouts to employees that have been stricken with loss of employment due to employment being move to other countries” (Hira, R. 2004). When a person purchases an items of the Nike brand, they see made in Japan, or another country in which it was made. In global stratification of the Nike company, the other countries are the bigger winner, because all the jobs that were once a part of the United States are now employing the other countries residents, they may not make the amount of money a Unites States citizens would in the states, they took the job market, and are decreasing the poverty rate in their country. Before jobs where moved overseas Nike employed over 45,000 people, lay off then appeared which left 75% of the employees without jobs.

Reference Page
Hira, R. (2004). White Collar Jobs Move Overseas: Implications for States. Spectrum: Journal of State Government, 77(1), 12-18.

Ivancevich, J. M., & Baker, J. C. (1970). A Comparative Study of the Satisfaction of Domestic United States Managers and Overseas United States Managers. Academy Of Management Journal, 13(1), 69-77. doi:10.2307/254926

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