In recent years large companies have also been paying their workers higher wages. And the more profit a company makes the more it benefits the economy. “Americans think the U.S. economy benefits when big businesses or small businesses make a profit, although, by 84% to 64%, more consider small-business profits helpful”(Saad). Although those are some supporting facts for large businesses in America, they are too powerful and too rich. In the past and even in present time large companies generally hurt their consumers and workers.
What the model has done to the United States matters and it matters a lot. The American people of today are still feeling the atrocious effects of the Better Business Climate model. The inequality gap keeps growing in which the rich are getting richer and the poor are getting poorer. Unbridling Wall Street from regulations allowed financial raiders to buy companies, increase debt, and let the American people suffer from its demoralizing effects (Leopold, p. 54). The wealthiest one percent, usually CEOs and investment bankers, were given hefty raises while the average worker’s pay has languished.
As there is more trade among countries, the GDP of these countries increase, and thus the average income of the population increases. The people who benefit from the increased GDP are the rich, and the poor get misused. Globalization is beneficial for the large companies who can now export their goods to other countries feely and earn profits more easily. As the technology of the world is becoming more advanced, the need for labour is decreasing as the process of producing the textiles, clothes and footwear has become . Use of factory labour in LEDCs and how the clothes and shoes we buy are produced The factory labour is exploited and overused.
The thing that benefits the most from globalization is the economy. Globalization allows for companies to move some of their workers overseas, or employ new workers. This means workers can do jobs for lower pay, which will allow lower prices for that service or good in the US. Although this seems very efficient, there is a downside. When companies move their work overseas, it might cause jobs in the US to not be needed anymore, and people will be left without a job.
People had to work hard or travel a long distance to get their goods in the past days, but now they easily can get cheaper and more available goods. As people’s standard of life gets better by the mass production, the economy gets developed, and some social classes disappeared somehow. As he states in the article, the people’s life somehow gets standardized that very high class and low class of people are no longer seen, and most people are similar in their ways of life. People’s life has been globalized by the collectivization and mass production. However, the corporation of companies left a great impact on individual that diversity of individuals and their independent lost by the new lifestyle.
Globalization is a key theme that has been discussed in almost all of the above articles. Aguilar and Herod’s (2006) article argues that cleaners in the contemporary economy continue to suffer low wages and poor working conditions because of neo-liberalization. Neo-liberalization has resulted in many companies embracing the outsourcing of employees to save up on wages and social security benefits. From Banerjee’s (2007) article, it is clear that neo-liberalization and globalization are the main reasons that have led to an increase in working hours. This has made many companies restructure job designations because they want to maintain the long working hours and low wages.
Capitalists, as the ones who possess means of production, hold a significant lead in capitalist economy over laborers who are regarded as the weak. While capitalism sounds attractive due to its purpose to let individuals get paid depends on the work they done and the efforts they put, however, this rule does not always applies to everyone. Capitalism is the system where capital brings more capital. So the people started with larger investment of capital can accumulate money much easily than the people do not. As time goes on, the rich gradually get richer, while the poor are stagnated or even getting poorer.
Unfortunately, this business is heavily based upon said relationships for suppliers, consumers and everyone in between. 7.3 Opportunities As the richest people are spending more on vacations than on retail, the demand for luxurious vacations is growing. On family vacations, at least one family member requires each service that we provide, making the offerings endearing. The economic slowdown affects the billionaires less, thus keeping the demand somewhat constant. However, the other businesses such as hospitality, travel and activities become cheaper owing to the economic crisis thus providing opportunities for SpeVac to achieve good deals for their clients and retain a larger
Because of the Globalization-which means there are much more trade between different countries than before-plenty of countries will be affected by one country if there is inequality of financial expenses and income. For example, the freight crisis in Thailand had expanded quickly to the Southeast Asia and Japan, and even spread to the Russia and Latin America, which makes world economy unstable eventually. What is more, globalization has already exacerbated the gap between rich and poor. Globalization creates efficiency by competition, but the wealth is concentrated to a small group of companies and people because of the unequal distribution of profit between different countries. The developed countries have the higher status of globalization-as the owner of most of advanced technology and capital, so they have the dominance of international finance like price setting.