The Effects of Outsourcing on the Economy In recent years, outsourcing has become an increasingly popular alternative for some of the largest corporations in North America, who are looking for inexpensive ways of lowering overall costs. Outsourcing, which is the relocation of jobs to other foreign countries, has become a controversial new way of doing business. In considering the pros and cons of outsourcing, we have to ask some key questions: Who is benefiting for outsourcing? What types of jobs are being outsourced? What effect does outsourcing have on Americans?
For example, cross-cultural differences create important barriers to intra-firm communication, negotiations and product standardization. MNCs are facing a much more turbulent, dynamic and heterogeneous business environment than was the case not long ago. Developing countries are no longer merely a source of cheap labor. With their vast pool of consumers with increasing purchasing power, emerging markets offer more attractive opportunities for growth. A number of suppliers in developing countries have upgraded their productive capabilities.
I think the main behoove for a international business that abide ethical standard which will can conduct result in fair trade is the following: consumers can really improve your position in the market. Today we have great technology which can helps us to make international business market economy really helps and stimulate persons in the world for creation strong and reliable relationships. Modern economy discovered a new world of opportunity such as, the Internet, telecommunications, and travel has played a major role in impacting in International business. (http://www.examiner.com/article/the-impact-of-globalization-on-our-daily-lives) Global economy of international business realizes and implants standard opens up new opportunities for importing and exporting products and services. Global economy gives the change for realization and implementation for underdeveloped nation to discovered new opportunity and challenges.
Tourism creates employment opportunities to the local people of the host country. Income from tourists can be used to develop the country by developing new roads, more airports, building new places to attract even more tourist. The foreign currency earned from the tourist can help local people expand their business. Natural features which attracted the tourist in the first place can be protected and preserved using from tourism income. As tourism increases small tourism sectors business also starts growing due to which employment opportunities also increases.
Globalization is the growing interdependence of the world's people that involves the integration of economies, technologies, and cultures. It is described as the increased movement of people, knowledge and ideas, and goods and money across national borders that have led to the increased interconnectedness among the world. Globalization is often thought of in economic terms but as we know there are three major components implicated with this idea including: economics, politics, and cultures. Some associate globalization with modernization whereas, it is perceived that there is an alteration of traditional societies into Western industrial ones. This challenges us into a debate of whether or not globalization is positive or negative.
BUSINESS GLOBALISATION ASSIGNMENT Critically analyse the reasons for the growth of globalisation, with reference to the advantages of it for businesses, suggesting ways in which they could bring about cultural social and economic change and discussing the effects on their employees in particular and the worldwide workforce in general. By Salim Mohammad Wali MBA ID:_________ Word Count: 1604 Globalization is the creation of interconnections between countries. It is a process wherby barriers (physical, political, economic, cultural) which separate regions of the world are reduced or removed completely. This process hence stimulates exchanges in goods, services, money and people. Globalization helps countries to specialize in goods and services they are very good at and allowing goods and services they are lacking to be provided by those countries that have excelled in them.
Communities having been in progress, the economic base determining the superstructure, globalization in the world is the trend as unstoppable as the wind. It indicates that social groups are affected more and more extensively and deeply by events of other social groups in terms of economic, social and political. The economic base determines the superstructure, as well as the effect of economic globalization is seen here and there. The most direct reflection of the movement is that we can buy several of foreign products in our own country. Since World War II, globalization is largely the result of planning by the main counties to break down the trade barriers to seek the economic growth.
Critical theorists argue that the winners of globalisation are the TNC's, who have the power to stop or prolong investment in other countries, usually LEDC's (lesser economically developed countries), if they do not see long term profit or benefit to their company. This theory suggests that TNC's are likely only to invest in countries with high levels of consumer activity in order for them to create the most economic growth. These countries are usually the wealthiest globally, they continue to trade, invest and co-operate with one another, effectively aggravating levels of poverty by ensuring the wealth remains with the most powerful nations whilst the
(+ ve) Globalisation also creates competition among countries in terms of investments and markets as they compete for Transnational Corporations (TNCs) to invest in their countries. This leads to countries developing themselves to be more attractive towards the investors and thus boost infrastructure and economic development of the country. Dalian is an example of a city that has transformed itself from a developing area to a thriving sea and air port. It also has a sound financial infrastructure and industrial parks which provides jobs for its people, and therefore has benefitted China as a whole, as TNCs are increasingly attracted to it and help to develop the country further. (+ ve) However its is
Globalization has changed the face of trade and commerce all over the world and the developing countries are the ones who have greatly benefitted out of this. Information and technology have enabled them to communicate effectively as well as efficiently. Outsourcing of business processes as well as knowledge processes is one of the most important outcomes of globalization that has greatly benefited developing countries. It has helped in creation of jobs and revenue as well as setting up of a number of companies in developing countries like India and China. This has led to migration for the purpose of business and other purposes.