Henry Ford made the argument for higher wages for employees because employees who are paid decently recycle and reinvest part of that income back into the economy, and even into the product that they manufa... ... middle of paper ... ...e to this trend. Corporate Social Responsibility has a place in the market economy, and it can attract investors. There is also a place in the market for less responsible corporations. Our company is presented with an opportunity to innovate, and explore new avenues. America is the heart of innovation.
Global Outsourcing of American Products and Services Global outsourcing of American products and services is a trend that is becoming increasingly popular with large corporations. For the same services provided in the United States, corporations are finding quality work in other countries for a fraction of the cost. The country currently at the forefront of this trend is India. This paper will discuss companies that outsource business to foreign countries and also why they are chose to. The ethical implications to both countries in these situations will also be discussed.
With liberal trade restrictions and globalization, companies and economies around the world have become more financially intertwined. For the most part this has stimulated economic growth around the world, creating more affordable consumption opportunities. The being said, there still remains a big loophole in the tax system between countries in the global economy. For many multinationals including Apple, they have moved their most profitable subsidiaries overseas to reap the tax advantage unavailable in the United States. As this continues to occur, the United States remains to have the highest corporate taxes around the world of 35%.
• The last reason is the efficiency seeking; multinational corporation will seek their overseas to re-organize economic changes. The fact that multinational corporation offer a lot of job opportunities to the foreign countries is undeniable. Beside that, there are some major issues in the economy that happened because of them. The following will be a list of the advantages and disadvantages of multinational corporations. First, let’s take a look of the main advantages of multinational corporations that will offer: • The benefit for consumers: it can be easily notice that the larger the corporation, the better they are to lower the average prices and costs for its consumers.
Imagine the amount of money some companies would have to pay American workers to do the same work as some third world countries. Offshoring has become a big factor in the global economy. Many companies have opened customer service centers in different countries due to the savings. Clothing companies moved their manufacturing plants to other countries due to the cost of labor. Major stores in the US, for example, Wal-Mart, brings in most of their product from other countries to save money and pass that savings onto the consumer.
Well-educated and highly trained foreign workers are inventive and productive. Expanded work forces increase business flexibility, allowing companies to quickly respond to changing demands. Larger labor forces also encourage specialization. Labor productivity rises as companies adjust to larger work forces and invest in employees.” (Bandow) Let us also remember that Americans also benefit from the cheap labor of illegal immigration. It is thanks to these immigrants that are willing to do the tasks that many Americans do not want to do (such as agricultural labor) that Americans can enjoy the produce of that labor for a cheaper price than would otherwise be achieved without the immigrants.
It benefits, the upper class, large corporations, and those who have received advanced educations, but not the "blue collar" workers. Those who have not received extensive schooling and are best served to do manual labor suffer greatly from foreign competition. Businesses can have plants in other countries where workers are paid as little as fifty cents, while plants in America are required to pay workers several dollars minimum. Many industries are building plants in foreign countries, manufacturing their goods there, and shipping them back. As we have increased globalization and extended trading with the reduction of tariffs, the implementation of NAFTA, and the organization of the WTO, it has become easier for business to hire workers in countries with lower wages.
This results in a lower cost to employers and an influx of workers. Whether legal or illegal, additional workers result in economic growth. Finally, globalization has facilitated human development through cultural diversity, broadening ideologies, and creating beneficial competition between nations. However, because the U.S. protects its citizens with labor laws and livable wages millions of manufacturing jobs are lost to inexpensive, overseas counterparts. While there are many benefits to fusing the world, globalization comes at a cost, the elimination of America’s middle class.
Since 2011, outsourcing jobs has become a major part of the way American companies produce goods. Outsourcing a job occurs when you obtain goods or services from a foreign supplier instead of from an internal supplier. Many companies in America pay people in other countries to produce goods instead of producing them here in the country because it seems cheaper. This practice, originally thought of as a solution to the rising prices of consumer goods has also become a problem. While outsourcing does take away jobs from people here in the States it does help us by making prices for consumer goods lower.
This also means that it produces more jobs in this country (2). Fortunately, jobless people can find many places to work easily. Second, for the US, the key for saving its economy is oil in Iraq (Oil Tax Would Fund Iraqi War 1). Dennis Kucinich said, “There is public evidence, especially with the Bush administration considering ... ... middle of paper ... ...m from other nations, they do not stop the war. For the US Iraq is a very important business partner.