“Without warning, they left us broke, sealed out, and jobless” (Edwards). These are the words from Gregg Davis, a former Oshawa workman, after he received notice his job was being relocated to Nashville, Tennessee. Gregg Davis worked for IQT Solutions, a call-center company based in Oshawa, Ontario. Along with 600 other people, Gregg Davis was left jobless after his job was outsourced to Nashville, Tennessee in a desperate attempt to save the company money. Today, thousands of American workers are also waking up to the stunning situation of unemployment as the result of their jobs being outsourced to foreign countries. This outsourcing phenomenon has been fueled by the recent trends in globalization, with the hope to cut cost and increase production. Globalization was intended to benefit the world economy, but the wage difference among different globalized countries has promoted a negative aspect of outsourcing. If wage equality can be achieved among the countries, globalization’s full potential can be achieved. Although it is becoming a rising topic, globalization is not new. The concept of globalization has existed from beginning of time, but gained most momentum when the earth was discovered not to be flat, and traveling east was possible by traveling west. This allowed countries to trade for any foreign product they once may not have had. Globalization integrates countries with different economies, societies, and cultures across the world into one global network, with the ultimate goal of one emerging economy (Ahearn). Globalization has been fueled by new trends in trading policies, technology, and the world supply of labor. Government trading policies have played an important role in globalization, allowing the integrat... ... middle of paper ... ...ks Cited Ahearn, Raymund J. "Globalization, worker insecurity, and policy approaches." Congressional Research Service (CRS) Reports and Issue Briefs. Congressional Research Service (CRS) Reports and Issue Briefs, 2008. Academic OneFile. Web. 29 Sep. 2011. Edwards, Peter. "400 Oshawa Workers Blindsided By Company’s Sudden Closure." Toronto Star [Toronto, Ontario] 17 July 2011. Print. Friedman, Thomas. "Introduction." The Lexus And The Olive Tree. New York City: Farrar, Straus, Giro, 1999. 9. Print. Morrison, Wayne M. "China and the World Trade Organization." Congressional Research Service (CRS) Reports and Issue Briefs. Congressional Research Service (CRS) Reports and Issue Briefs, 2002. Academic OneFile. Web. 3 Oct. 2011. Veseth, Michael. "Chapter 9. The Future Of Globalization." Globaloney 2.0: The Crash Of 2008 And The Future Of Globalization. 2010. 183. Print.
In the 1960’s American Companies started offshoring job positions to Asian countries, and Hispanic countries. American Companies started offshoring American Jobs because their business was more profitable in other countries, so in order for the companies to be closer to those countries American Companies started hiring employees in those countries. Furthermore, as American companies realized how much money they could save by offshoring jobs to other countries with low income they started offshoring more jobs with the purpose of saving money. As American companies offshored white and blue collar positions, their profit incremented and they were able to invest more money in their products. The objectives of this report are the following:
Mankiw and Swagel (2006) argue outsourcing is not as large a phenomenon as the media describes. Their research indicates outsourcing accounts for very little of job loss in the United States, nor has it made a distinct contribution to the slow rebound of the labor market. They go on to propose that increased overseas employment has actually contributed to higher employment in parent United States companies. They reported that while 30,000 jobs were lost per month in 2004, two million job changes per month were happening as well. They reference the Bureau of Labor Statistics when they report that in 2015 there are expected to be 3.4 million jobs outsourced, but 160 million jobs gained here in the United States. They also claim that there is a rise in net US income by 12-14 cents per dollar of outso...
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
The world is growing increasingly competitive, with newer technologies making the earth seem to shrink in size. Now this isn't literally of course but figuratively. Information can be shared faster, and at a fraction of the cost that it used to. Therefore this newer technology has flattened out the world, Thomas L. Friedman stated that “ Every young American today would be wise to think of himself or herself as competing against every young Chinese, Indian, and Brazilian.”. Globalization makes it easier for people to connect and share their ideas. It also makes it easier for people to travel to work and connect with their co workers who may be hundred of miles away. Globalization is bringing the world closer. When competing for a job one may be competing with an Indian or Brazilian and whoever has the most education will get the job. Moreover it isn't local competition anymore it’s now on the global level, whether its offshoring the job or having the employee move. Friedman stated that “…data entry to securities analyst to certain forms of accounting and radiology that were once deemed non tradable are now tradable.”. More and more jobs can easily be off shored to a Chinese, Indian, or Brazilian who is more qualified than an American. Furthermore the likely hood of offshoring is increasing and so is the level of education one needs to have the job they want.
Outsourcing creates a loss in secure work and leaves people with retail and restaurants jobs, where there is little to no employee benefits and are essentially dead end jobs. Barbara Ehrenreich, “Nickel-and-dimed on (Not) Getting By in America”, talks about her undercover experience working a low wage job and the difficulties living with those financial constraints (1998). She concludes that her wage needs to be increased by about two more dollars an hour to really be a livable wage. That was in 1998 and almost 20 years later we are still facing the same issue. The lack of a livable wage cause some workers to take on two, three, or even four jobs to make ends meet. Ehrenreich continues on by saying that welfare recipients use the funds given to them in conjunction with their job(s) in order to live (1998). When marginalized groups are constantly working with low wage jobs, they have no time to trying to pursue a technical trade or higher education to get a better job in the future. This problem is what creates the continuous rut, that never allows the disadvantaged a chance in achieving
Globalization is an “interrelated transformation in economic, political, social, and cultural practices and processes toward increased global integration”. It has some benefits to it but, those benefits do not out way the disadvantages of globalization. One disadvantage of globalization is outsourcing. In the article by Callero Tim Dewey was laid off by United Airline because they found out that they could outsource his job and pay his counterpart less than him. This illustrates that today it is not enough to have the right education, or have a good work ethic if the company you are employed for finds a way to cut costs so that they save money they’ll do it. Another example of outsourcing but, from the perspective of person getting paid less
S. jobs. The economist Robert Schiller quoted “Even the so-called recession or ‘business-cycle data’ are influenced by globalization and the new technology that fosters it.” Schiller also noted, job loss recovery, if there is in-fact any recovery, is due to globalization and new technologies. Due to this globalization and new technologies, American workers have been laid off, to cut costs and two million U. S. jobs have been eliminated since 2000 (Heffes, Sep2003, Vol. 19 Issue 6). The concerns American people express and the havoc being stirred up is legitimately in our country. These American people would see outsourcing as an unethical business
Outsourcing has become a predominant issue among many domesticated American companies. Unlike the popular opinion which supports outsourcing, transferring American work to foreign countries have serious lasting consequences on the American economy. High unemployment is one of the major contributions that arises from sending manufacturing and labor jobs overseas. The lack of available work has a slippery slope effect on many other occurring problems that Americans face today. With less available work opportunities, many foreign students that complete their graduate coursework often return to their home country, applying their knowledge learned from with the United States. As a result, there is less of a potential employee pool to choose from in a tight market. Outsourcing is popular with American business due to many benefits such as lower wages, low regulatory costs, tax benefits,
In this dissertation, the impacts of globalization are divided into two broad groups: 1) global market threats, and 2) worldwide market opportunities.
First of all globalization has led to exploitation of labor. We can’t ignore the fact that ethical aspects of international business deserve special attention. Corruption and engaging in illegal practice to make greater profit is a source of continuing controversy. Sometimes companies go international and move their production to foreign countries so they could employ workers for long hours, at low wages and in poor working conditions (sweat shops). They are also using child labor, the employment of children to a full time work that can be otherwise done by adults all that so they could get out of their responsibility towards their workers by avoiding paying them national insurance …When these multinational firms go abroad they forget all about principles and about human beings and their rights, according to Kent, J., Kinetz, E. & Whehrfritz, G. (2008/March24). Newsweek. Bottom of the barrel. “The dark side of globalization: a vast work force trapped in conditions that verge on slavery”, David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62) also agrees with them when he explained his concerns about Chinese and Indians t...
Norris, Floyd. "The Upside to Resisting Globalization." The New York Times n.d.: n. pag. 5 Feb. 2009. Web. 1 Nov. 2013.
Krain, Matthew (2005), “AP Comparative Government and Politics Briefing Paper: Globalization,” [http://apcentral.collegeboard.com/apc/public/repository/ap05_comp_govpol_glob_42253.pdf], accessed 15 May 2012.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
Larsson, Thomas. The Race to the Top: The Real Story of Globalization. Cato Institute, 2001.