It is evident, the profits of U.S.-based companies have increased due to globalization and majority of it come from their foreign counterparts. Moreover, globalization has lowered the cost of several goods and services here in the U.S. Likewise, globalization has made it easier to produce more goods and increase services in countries where the costs are lower. Flexible accumulation in the United States has allowed for companies to move their production facilities and activities around the world and even within a nation in search of cheaper labor, and lower taxes, to accumulate as much as profit as possible. This is all fine for the companies and organizations who are gaining money, but not so good for the workers who used to work at these companies before they were offshored and outsourced.
Immigration contributes critically to the economy of the host country, either positively or negatively. This paper has argued that immigration should be encouraged in order to improve the host country’s economy because there are obvious benefits to the economy of the host country in terms of state revenue, the labor market, and country development. Although, some might argue that immigration leads to mass deportation, and an increase on border-patrol budget as well as a decrease in the wages of native-born, high-skilled workers. As discussed before, immigration increases gross domestic product and provide cheap services, enabling high-skilled, indigenous workers to focus on their work more, rather than doing domestic jobs, such as house cleaning. Moreover, immigrants create innovations, such as Google, and they increase the number of scientist in the U.S. As a suggestion, the host country should inspire companies to employ workers depending on their experience, so immigrants have a great opportunity to compete with the natives.
Apart from the factor of money, the companies and organizations outsourcing the jobs are also in charge of the welfare and safety of the people they employ, thus providing them with a safeguard. Conclusion Outsourcing work has benefitted both ways, countries like U.S and U.K get cheaper labor compared to what they might have to pay in their own country, leading to cost cutting. Items from a simple DVD player to maintaining an aircraft has gone down. Unemployment rates slashed and people provided with a safety of their future in India and China like countries. Thus, positive aspects outweighing the negative aspects.
Due to transportation become easier in globalization, outsourcing in MNEs are more frequent in recent years. They are headquartered in one country, move some process of their jobs or production to lower-wage countries, this usually could help companies reduce costs. Bharti are outsourcing their IT system to western multinationals. It is one of the reason that Bharti Airtel is growing
One of the challenges is the increase of unemployment local workers degree. Due to the employers’ desire to reduce cost by hiring low cost labour, the local workers have been nosed out. Employers feel more pleasant having foreign workers working for them and that lead to the situation where the local workers are not being selected for the job. For example, the local workers are unable to be employed at manufacturing industries such as at the construction site because those sectors have been flooded by foreign
To some extent, globalization has been positive to the world, not only can it make more efficient markets, but also it creates more opportunities for firms in developing countries. In general, economic globalization is dominated by developed countries, the developing countries tend to be at a disadvantage. It has widened the gap between rich and poor. Globalization is a double-edged sword, as the popular saying goes, everything has two sides, just like a coin.
It has helped countries by allowing them to do more of what they are good at and make it available for the outside world. It has helped poorer countries to gain wealth, as it is allows them to showcase the world what they are good at. Also, the people buying these things are benefited as they get the goods on a lower price. Globalization has also helped a lot in the health sector, as it helps countries who are poor get good and proper equipment and medicines to sustain the living of the people in that country. Also, the multinational countries such as Apple, also believe that in coming years we would decrease the harmess of globalization by cutting down their wastage of resources and creating eco-friendly products.
For example, if the manufacture of toys found that manufacturing and delivery at a lower cost because of lower foreign country in a foreign country because of lower wages of migrant workers, the company may close the plant using domestic and foreign manufacturers. Strengthen global outsourcing business without barriers on a planet without borders. As the undertaking think global, outsourcing their model was modified to go with the same patter. Outsourcing is no longer just be a quick glance to achieve a decrease in consumption. Global Outsourcings using a mixture of on-site, at the sea and close to shore outsourcing decisions in order to achieve important business destination for outsourcing association.
There are pros and cons to almost everything and international trade has its advantages and its disadvantages. Whenever someone decides to do something, they have decided that the benefits outweigh the cost. International trade can greatly increase the profits of a company. It is one thing to have a national brand but to have a global brand can take your company to the next level. Going international will certainly grow your business.
These advantages and disadvantages were further elaborated by Popoviciu (2012). According to her, the good thing about globalization is that it allows countries to be able to interact with each other that can result to the advancement of knowledge. Furthermore, globalization can also open new markets for investments along with improving trade systems. Also, Globalization is not only about the increase in economy, but it can also allow other countries to be familiar with the culture of other countries (Popoviciu,