preview

Effects of Globalization: Globalization and the Effects on the United States Economy

Powerful Essays
Globalization has affected every aspect of the business community in one way or another. Globalization in a simple sense is a business’s movement from one country to another. This is done for a number of reasons; amount of readily available resources, labor market, increased number of customers, and to ultimately become more profitable. There is a decisive advantage for a business to move overseas, but there are a number of drawbacks globalization creates on the local economy. When businesses become an international entity the home country experiences increased unemployment rates, the human resource department now has to manage across borders, prices of goods fluctuate, and forcing wages to decrease for unskilled workers and increase for skilled ones. To protect businesses and employees from unfair practices, various organizations have been created to enforce the policies set forth. Both international government organizations and non-governmental organizations play a vital role in enforcing the policies. It has been difficult to maintain a coordinated effort between developed and underdeveloped in terms of labor laws and tax incentives. Businesses will often seek out the locations where they can benefit the most.
Definition
Globalization is a term which holds a multitude of meanings. It has been defined as a phenomenon which has enabled individuals and businesses to seamlessly interact with each other without borders. Globalization displays increasing trade and investment following the disappearance barriers and the interdependence between states (Galateanu, 2012). Even though an agreed upon definition is difficult to obtain, globalization is the process which expands businesses across borders. It integrates the socie...

... middle of paper ...

...r, D. (2008). How globalization is changing our workforce: A global vision to job development. Journal Of Vocational Rehabilitation, 29(1), 15-22.
Quirk, J. (2008). Examining Threats to the Economic Aspects of Globalization. International Advances in Economic Research, 14(1), 110-111. doi:10.1007/s11294-007-9125-8
Skipper, W. (2007). A New "New Economy"? The Potential Ramifications for the U.S. of the Growth of Services Offshoring. Globalization (15359794), 6(1), 1.
Spence, M. (2001, July/August). Globalization and unemployment. The Downside of Integrating Markets. Retrieved from http://www.foreignaffairs.com/articles/67874/michael spence/globalization-and-unemployment
Ukpere, W. I. (2009). MECHANISMS TO AMELIORATE NEGATIVE IMPACTS OF GLOBALISATION ON HUMAN RESOURCES, INDUSTRIAL DEMOCRACY AND HUMANITY. Journal of Academic Research in Economics, 1(3), 253-270.
Get Access