...many wondering how their life will change. It is the process in which different societies and cultures integrate to gain better understandings, and live a better quality of life. This progress affects the world economically, politically, culturally, and socially. It affects each country differently, some better than others. This term once meant that more people are moving across the globe, spreading ideas and goods across borders. In today’s world, some of the matters it deals with are free trade, world banks, sweatshops, and outsourcing. Many people see the positive effects of globalization. Societies that become richer with knowledge may be accepting of all types of people, making our world more peaceful. However, I see globalization as damaging to developing and developed countries in today’s world. Workers in developing countries are prone to harsh conditions and exploitation. Developed countries suffer from greedy CEO’s and unemployment due to outsourcing. Globalization damages developing countries because many young people work in sweatshops, which damages their health and development. These young boys and girls have little opportunity to develop into better human beings. They are subject to work during their development stages, instead of education. Ha-Joon Chang, a former consultant to the World Bank wrote a book on the myth of free trade and describes a situation involving his son who is six years old. “If I drive Jin-Gyu into the labor market at the age...
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...There are a lot of concerns for today’s economy. One of them being wealth distribution. There is the poor, middle class, and the rich. It is evident from the graph shown that the poor are getting richer, the rich are getting richer, and the middle class is getting poorer. So, what is the cause of this? The big answer economist will say is “It Depends”. It depends what factor you look at because there are many. The one I want to focus on is globalization. Is globalization a factor in wealth growth? How is it a factor? Is globalization positive or negative for wealth growth? If anything, what should be done? These are all the question I will try my best to answer in this essay. Globalization VS Wealth Growth Back to the previous question, does globalization effect wealth growth? My answer is, yes. It absolutely effects wealth growth for all nations. Globalization effects a lot of economic studies. For an explanation, let me first define globalization. TechTarget.com defines Globalization as the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. There are probably different ways globalization effects but, I want to look at the business portion of globalization. Every big corporation is always looking for ways to make their production cheaper so they...
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...Americans Sour on Trade (WSJ.com) By SARA MURRAY and DOUGLAS BELKIN This article begins by mentioning how there is a hostile view from the American public towards globalization. From the average America’s point of view, free trade and globalization has done nothing but hurt our economy and take jobs away from the US and bring them overseas. The latest poll shows that a slight majority of Americans see free trade agreements as s tool that has hurt the US more than it has helped. One of the most dramatic results of the survey comes from data that shows that even well educated people that tend to beneficiate from free trade and whose jobs are less likely to ever go overseas also feel that free trade agreements are hurting the US. When compared to 10 years ago when this survey was first done there has been a wide increase in the educated people that have changed their mind about free trade. This gap doubled from 24% to 50%. Politicians have now taken the issue into their own hands. Last week the senate passed a bill that would pressure China to float its currency in an effort to level the amount of imports that enter the country. While this may be a temporary issue that politicians use for their advantage in the next elections it is still an issue that more and more Americans are paying attention to as the unemployment rate still lingers near 10%. The article also mentions how China is beginning to replace Wall Street as the new “America’s villain.” Some think this happened...
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...TUI University BUS 401 Case Study Module 3 Dr. Yi Ling Abstract Outsourcing occurs when a company either buys products or services from outside sources or sends work to outside contractors versus doing it themselves. There are several advantages and disadvantages to outsourcing to include cost savings, sharing risk and developing better leaders internally. There are also some disadvantages like lack of quality control, loss of some management functions and losing the ability to build well rounded leaders in all aspects of the company. In a country like Iraq, the United States military is outsourcing many occupations in an effort to rebuild the Iraqi economy and eliminate the need for military presence at the same time As our lesson for module 3 starts out with in one of the first comments, in that people are the main asset of any organization, it is up to the organization itself, mainly through its Human Resources Department to figure out what parts of a companies process or performance could be contracted out for somebody else to perform. I am going to discuss some advantages of outsourcing to include saving money, the shared risk associated with outsourcing, accommodating fluctuations in requirements, and the assistance in developing internal staffs. I will also discuss some disadvantages to utilizing outsourcing within a business to include poor quality control, loss of managerial control, decreased loyalty among company employees, and the loss in developing...
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...The Trend of Outsourcing Jobs Did the major companies in America not think of global competition as they started to expand their operations and increase the salaries of the workers? Why is it such a hot topic now, why didn't this act of outsourcing start long ago? What effect does outsourcing have on the American economy, will we be able to stop this trend, and if so what will be the effect. In this paper I will be looking at and discussing why companies are outsourcing the jobs overseas. What benefits that companies are getting out of it, and the problems that face management, as outsourcing seems to be the trend of big business. INTRODUCTION Outsourcing is the delegation of tasks or jobs from internal production to an external entity (such as a subcontractor). Most recently, it has come to mean the elimination of native staff to staff overseas, where salaries are markedly lower. There has to be a reason that companies are going to outsourcing rather than hiring people within their own country. The bottom line, the single thing that drives every company in the world. What ever can increase the bottom line you can expect that companies will do everything possible to reach higher profits. Living in Michigan almost my whole life, and being feed from the hand of General Motors outsourcing hits close to home. I feel that the one thing that has increased outsourcing is the results of the union. Back in the time when the union started I believe what they were doing was something...
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...Outsourcing: A problem within itself August 26, 2012 AT&T is a communications and now entertainment company whose corporate headquarters are located in Richardson, Texas and Atlanta, Georgia. AT&T is responsible for most of the ways of communication in America today. With landlines and voice over IP, consumers will be able to construct business or speak with loved ones over the phone. AT&T went through a huge change in the 2000s with the merge of Southwestern Bell, Bellsouth, and Pacific Bell. With the merge and buyout of these companies, AT&T is now in almost virtually every home if you have a landline. A little known fact that people do not know is that, even though you may have another provider, AT&T owns almost 95% of the lines that are ran into your homes, which means, AT&T has become very profitable off of its competitors who have to buy these lines from AT&T in order to still be in business. AT&T has a corporate perks site for employees to purchase goods and discounted rates. Also, AT&T offers a 6% match of your 401K, which is a great reason to seek employment with the company. Due to the merge, a lot of employees lost their jobs due to a non-need of these employees with the AT&T organization. A lot of these employees that came from Bellsouth, etc. were asked to take pay cuts or relocate in order to keep their jobs. This was a huge cost-cutting move which has now led to an increase in jobs and the development of new products....
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...different area and through this process people may learn and benefit from other countries. As more and more nations catch the step of globalization, this has become the main topic in the era and all kind of voices come upon it. Some people believe that globalization will not benefit the world because of different reasons. They think it hurts both the developed countries and the developing nations, especially on the economic field. I understand that everything has two sides and globalization may have it harmful points. However, I believe what globalization has bring to the whole community on economic area is mostly positive things as it helps the developing countries with their economy, makes people live under better situation and provide more working opportunities to developing nations. At the same time, it lowers the cost of developed countries and makes strong countries get more economic benefit from this process. Maybe some people insist their point that developed nations benefit most from globalization. I kind of agree with that. Dave Curran, the deputy president of the Union of Students in Ireland, published the article “Globalization Does Not Benefit Developing Nations” to argue that developed nations are the one who get the most from the free market. In this article, he states his point that in the current trade system, only powerful countries can benefit from...
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...Introduction Taking Sides Clashing Views in Management written by Marc and Vera Street diverse into some deep, debatable topics. Upon reading each issue, it is clear that there is no right or wrong answer. Several times I found myself torn on both sides; this is – I was both for and against certain issues. I have always tried to make decisions as informed as possible but realized that judgments are still personal and what we believe in. Issues Issue 1: I do believe that corporations have a responsibility to society as a whole, not only to maximize their own profits and benefit the economy but also to respect the community that they reside in. They achieve this by not only providing employment, but also upholding an image. It is up to the corporation to determine whether or not the image will be a positive or negative in society; they need aim for a positive image in order to stay in business. Society has rejected some businesses because of their previous practices, from unsafe working conditions and wages to unsafe products and producers presented by management, and also unethical pollution of land and water. Corruption, misleading advertising, and managements that were solely profit driven were once tolerated, therefore rejecting the society’s needs. Due to such practices we now have laws and agencies that prohibit these actions. By evolving practices over the past one hundred years corporations have learned that the welfare of their employees and society is important....
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...CHAPTER 1 INTRODUCTION Chapter 1 emphasizes the internationalization of business and economic activity that has occurred since the end of World War II. Although international business activities have existed for centuries, primarily in the form of exporting and importing, it is only in the postwar period that multinational firms have become preeminent. The distinguishing characteristic of the MNC is its emphasis on global, rather than affiliate, performance. Specifically, MNCs ask, "Where in the world should we build our plants, sell our products, raise capital, and hire personnel?" Thus the true multinational is characterized more by attitude than the physical reality of an integrated system of marketing and production activities worldwide. It involves looking beyond the boundaries of the home country, and treating the world as "our oyster." Good examples include the globalization of GE's medical systems division and Arco Chemical. After stimulating student interest with this vision of the MNC, I then introduce the financial decisions that multinationals must make. I begin by discussing the key concepts and lessons from domestic finance that apply directly to international corporate finance. The lessons include the emphasis on cash flow rather than accounting earnings, the time value of money, the importance of taxes, and the unwillingness of investors to reward companies for activities (like corporate diversification) which investors could replicate for themselves at...
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...Outsourcing and its Effects on the Automotive Industry Abstract This paper will explain the history, current issues and future issues of outsourcing and its effects upon the automotive industry. Outsourcing has become a huge topic in recent years as our economy has begun to struggle. However as our automotive companies become more strained with increased wage expenses, shorter product life cycles and a higher cost of capital outsourcing is being utilized according to Parry and Roehrich (2009). Outsourcing can help to solve many of these problems by bringing wages down and bringing more resources and expertise in. This will help to soften the blow of these increasingly tough economic times. In order to do this they will have to reduce their on-site functions. Although as more and more core functions are being outsourced, the companies are at a larger risk of becoming “hollow”. Our essay will explore the history so that we can learn from our past mistakes and apply what we learn into the issues that we are facing currently and will face in the future. What exactly is outsourcing? Well Ledford (2006) describes that outsourcing is often used to describe situations where corporations move part of their operations out of the country. However these companies can also subcontract with in the same country and this would still be outsourcing. Now off shoring is a type of outsourcing which relocates business processes to another country in the hopes of keeping as much as...
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...------------------------------------------------- Fall 2013 – Mini project “The World Is Flat” November 18, 2013 Part I “The World Is Flat” The Triple Convergence The ten world flatteners mentioned in chapter two of the book “The World is Flat” together shaped a new global platform and embraced a new workflow system. This new platform permitted the world to join forces and interconnect in ways it had never interconnected before. Thanks to this new platform, geography, time, or distance was no longer a barrier for different sides of the world to collaborate. Due to the creation of “complementary software, the internet, and political factors” (Friedman) countries like China, Russia, India and Latin America, opened their borders and led to the fast pace of globalization mentioned by Friedman. Even though these flatteners were created in the 90’s, as they came together, they had to spread, take root, and connect in order to create this flattening. It didn’t just happen overnight. Friedman mentioned in the opening of chapter two talking about his Southwest experience with them giving people the ability to print their own tickets. And then there were multiple companies developing machines that print, fax, scan, email, and make copies. Needless to say these ten factors (flatteners) that were apparently unconnected came together and create a new global platform. This new global platform (web-enabled platform) is a major part of the lives of the people in the...
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...growth of globalization comes the changing of developing countries’ economies, and destruction of environments and cultures. So why than are we still allowing corporations to hurt them? There must be a stricter limit on corporate activity in developing countries to protect their economies, environments and cultures. How far does globalization go back? Some people argue that globalization can be traced back to the Turks control of the Silk Road or the discovery of the Americas. (Ornek, Globalization and Cultural Identity) Others claim that it began at the end of the 19th century with the beginning of the Industrial Revolution. (Ornek, Globalization and Cultural Identity) There is no certain start point for globalization but two modern technologies have helped globalization become more noticeable, communication and transportation. (Ornek, Globalization and Cultural Identity) Regardless of when globalization began, it is an ever-expanding process. Economics is one of the most heavily affected by globalization. As corporations expand and build factories in other countries they not only harm the economy of the host country but also of the home country. These companies are practicing outsourcing, meaning that they are taking jobs from people in home countries and giving them to those in host countries. This helps raise the unemployment percentage in home countries. For example according to the US census and the statistics from the Bureau of Labor Statistics and Population the percentage...
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...TABLE OF CONTENTS CONTENTS | 1 | INTRODUCTION | 2 | PROBLEM STATEMENT | 16 | SOLUTION | 18 | RECOMMENDATION | 42 | CONCLUSION | 52 | REFERENCES | 55 | COURSEWORK | 56 | INTRODUCTION What Is International Trade? International trade theories are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. Below are the different trade theories that have evolved over the past century and which are most relevant today. Plus the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? In more recent centuries, economists have focused on trying to understand and explain these trade patterns. To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. The main historical theories are...
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...1. What is the ethical dilemma facing Wal-Mart in this case? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it? Wal-Mart faces the ethical dilemma of Quality of Life. While there are many components discussed in the book that comprise quality of life, the one component most subject to violation by Wal-Mart would be Maintaining Boundaries. The flexible schedule system being implemented by Wal-Mart does have business value, but at what cost? Wal-Mart rationalizes the system by focusing on improving customer service. “Our main goal is to ensure that we have the correct number of associates in our stores needed to serve the customers shopping which we believe results in better customer service hour by hour” (clwill.com). The problem is that many associates of Wal-Mart have been affected by the flexible schedule in a negative way. The flexible schedule makes it difficult for employees to plan babysitting needs or prevents them from having Wal-Mart as a second or third job. That means workers may not know when or if they will need a babysitter or whether they will work enough hours to pay that month's bills. Rather than work three eight-hour days, someone might now be plugged into six four-hour days, mornings one week and evenings the next (Maher, Kris 2007). 2. What ethical principals apply to this case? How do they apply? There are two ethical principals that apply to this case for Wal-Mart. The first is the The Golden Rule, which states “Do unto others...
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...Is Production and Service Offshoring by United States Multinationals Bad for the United States Economy? Offshoring or offshore labor outsourcing is when a company relocates all or part of its production or services such as accounting or human resources to another country. There is no doubt that this has an effect on the U.S. economy. This paper will discuss the reasons that U.S. multinationals choose to offshore as well as the positive and negative effects this has on our economy. The downside of offshoring is the unemployment that occurs domestically when a U.S. company sends some or all of its production abroad. The disruption caused by this unemployment may lead to lower consumer spending by the laid-off workers which can in turn cause a reduction in economic growth overall. Additionally, unemployment caused by offshoring may necessitate a major effort to retrain the affected workers for new jobs which may be quite costly. Another problem with offshoring is the risk that products manufactured abroad pose because they are made without proper oversight. This can lead to dangerous and unhealthy imported goods such as toys tainted with lead and pet food laced with toxic substances. The positive side of offshoring is the money that a company saves on labor costs. They also avoid costly regulatory or environmental laws, and experience lower tax rates. Additionally, offshoring can be beneficial when certain company responsibilities can be done more efficiently overseas because...
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