Connecting Sociological Theory to the Global Economy

Connecting Sociological Theory to the Global Economy Travoric Smith DeVry University

Connecting Sociological Theory to the Global Economy
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The purpose of this paper will focus on the modern economy of today, applying the Talcott Parson’s functionalist theory ” a sociological approach that emphasizes the way in which the parts of a society are structured to maintain its stability” to the global economy which has become the norm todays society, gradually spreading it origins to more countries throughout the world. This paper will primarily focus on the significant economic trends of outsourcing of jobs how it has benefited society as a whole.

Global Economy “Global economy refers to an integrated world economy with unrestricted and free movement of goods, services and labor transnationally.” Therefore, to understand this concept of a global economy in modern society, we must first time define globalization, which is a “worldwide integration of government policies, cultures, social movements, and financial markets through trade and the exchange of ideas.” (Schaefer, Richard T., 2011)

Economic Trends of Outsourcing

Outsourcing defined as “” allows participating developed countries economies to prosper. “Outsourcing and international free trade helps to stimulate economies of participating nations companies to and increase the margins and to gain competitive advantage through contracting unproductive or unprofitable services and labor to foreign countries where they can be carried out more efficiently and at lower cost.” (Issitt, Micah, Grant, Richard A., 2011)
There is general perception in America that outsourcing has causes job loss and unemployment, however only temporarily, outsourcing actually stimulates growth by efficiently expanding it production to developing nations