One of the reasons companies outsource workers, and thus help imperialize foreign countries, is for cheap labor. Western corporations can have multiple sources for a given item, in order to allow continued production once one region realizes it is being treated unfairly and strikes. Oddly, it is argued that these companies could survive without any foreign connection—capitalism without imperialism. But, this would lower profits and prevent “advanced capitalism.” The decision to claim that cultures with what is considered modern technology is defined by military power rather than which culture is actually superior. It is this force that essentially created this gap.
2. Wengart Aircraft has been spending a lot of time on rework and that is now acceptable in their company. This has had a different effect of how the customers feel and they are now complaining about this need for rework and lack of quality from Wengart Aircraft. They need to change their corporate culture to reflect the need for quality the concept of TQM cannot be successful going forward. Corporate culture must support continues improvement and quality needs to be seen as a way of life.
Moreover, the goods from the outsourcings may not be as efficient as the goods that are made within the country. The consumers would choose the goods through the brand names or the prices; however, sometimes the consumers would choose goods by where they are made. Therefore, it is very significant to know where the goods are manufactured because it will increase the satisfaction of consumers since they are very demanding on the quality of goods. In addition, as the consumption of the goods decrease, the companies will earn less revenue that decreases the investment that they will spend for outsourcings. Thus, consumer demand has a big impact on outsourcings since people do not want to spend money on the outsourcings’ goods which make the companies earn less profits; on the other hand, the outcome will reduce the spending on
International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
Chapter 13 discusses labor markets and the basic models of labor supply and demand but the labor market for unskilled workers is changing. For businesses, the labor supply curve has dramatically shifted to the right especially with the implementation of NAFTA (North American Free Trade Agreement) and the rise of China. There is a surplus of labor supply so the business is able to go along the demand curve to the cheaper wage available, usually in another country. (See attached graph) This loss of jobs for the unskilled workers and increasingly for higher-educated workers is widening the income gap. This shifting of the labor market has other effects too, outside of the labor market.
List problems that stem from globalization related to economic development, labor issues, and the environment. Explain the origins and effects of labor migration, outsourcing, and offshoring. Describe possible approaches to dealing with the problems presented by globalization. Key Ideas Critics of globalization believe that it is harmful because it is driven by narrow economic interests. The benefits of globalization are unevenly distributed, and it causes hardship for poorer countries.
Economic Arguments Against Open Borders a. Immigration can change the balance of the nations economy and push wages down significantly. b. The costs of welfare, healthcare, education, travel systems, and public parks might rise. c. Migrants may take jobs of current citizens, putting numerous individuals out of work.
Even though they may have a good price for the quality and quantity the monies is not helping our economy grow. Once again we are sending money out helping other countries grow while we as a whole are here in the U.S. struggling. I can understand the need to buy steal, iron or any other manufactory goods cheaper if they can be found on foreign land, even though it make take away plenty of money. However, the use of these materials may be used to build new stuff that will help the grow economy and cause more jobs. I believe with using the foreign countries we as the United States need to make sure the steel, manufacture goods and anything else is of good material and we will not put out more money than needed because “we” decided to trust them.
However, there are advantages and disadvantages of international trade in the simulation that cause the world’s economy to fluctuate and leave certain countries astray. One of the advantages to international trade that I found for countries was the monetary gains and having the ability to keep their own markets honest causing the local producers to improve its goods for the reason citizens have more choices available to them. The disadvantages of international trade have to deal with countries of higher power that try to take advantage of smaller countries by swindling their government into unorthodox trading during a crisis within those countries. Another disadvantage is the possibility of local producers becoming weak, causing the unemployment rate to rise because local producers are unable to compete with international
It is true that corporations and consumers receive the benefits of cheap labor, but to facilitate stability, taxpayers must cover the infrastructural cost. Notwithstanding all the negative ramifications, illegal aliens do raise the general effectiveness of the U.S. economy by adding profitable contributions via taxes and hence diminishes marginal cost for total product production. Though this topic is important, there are more significant topics (i.e. automation in manufacturing or the growth in global trade) that will have more impact on the U.S.