Global stratification generally has a negative reputation. Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. Developing countries experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class is exploited by newly formed elite. Nike's vice-president, however, sees outsourcing as beneficial to both local and foreign enterprise. The following essay is an analysis of both perspectives.
Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. The United States loses about 230,000 jobs a year due to outsourcing and new jobs are not crated that frequently or rapidly, therefore local unemployment rises. At the same time, the US also loses skills due to outsourcing. Developing countries also experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class is exploited by newly formed elite. This is called "Global stratification". Consequences may be disastrous not only for the country
The threat of outsourcing makes it increasingly difficult for unions to organize workers. Two million jobs in the more heavily unionized manufacturing jobs have been lost to China. Outsourcing causes unions to not only lose members, but makes it tougher for unions to organize new members. In 57% of all union drives, employers threaten to move factories if workers unionize, a threat that is very real (Elk, 2010). Corporations have done more to hurt labor than labor has done to hurt itself. The most obvious threat that comes from outsourcing is the diminishing of jobs overall by transferring jobs from the U.S. to overseas.
In that context, the increasing of outsourcing in the US is inevitable. The 2016 presidential candidates mentions about the negative effect of outsourcing to the US due to exporting of jobs to over-sea vendors. The outsourcing opponents claim that outsourcing is having a negative effect on the American economy, as one problem is solved by creating another problem. The jobs were taken away from the US, double the unemployment ratio and seriously impact to Americans, especially the disability.
Everybody has their own worries and opinions, so they choose to care about different things. Barbara Ehrenreich puts it this way, “The world may be flat, as New York Times columnist Thomas Friedman has written, but I always liked to think that I was standing on a bit of a hill” (608). The truth about outsourcing flies over the heads of many Americans, but hits Ehrenreich right in the face. She writes this article because it’s a journalist’s job is to take in new information that may be hard to understand or meant to be kept on the down low and convey it in a way that’s appealing to many. She implicitly blames CEOs and other high class positions for some of the more outrageous and negative outsourcing situations. Zakaria directly addresses this problem stating: “There is a growing gap between America’s worldly business elite and cosmopolitan class, on the other hand, and the majority of the American people, on the other” (622). America’s worldly business elite and cosmopolitan class are the ones that understand and control outsourcing, while the rest of Americans stay uninformed and are the real victims of outsourcing. Zakaria describes “the rise of the rest” as the third major tectonic power shift. His theory, which makes perfect sense, implies that these power shifts are a natural occurrence. According to Zakaria, the third shift shouldn’t hurt America and Americans shouldn’t feel threatened or worried by it. The thing that Americans should be worried about is the growing gap of power that exists between the elite business class and the rest of Americans. Because the higher class only looks out for themselves and only seeks profit for the firms that they control, many negative things are happening to the lower class, the biggest being the outsourcing of their jobs. This gap in power is what Zakaria thinks could hurt America and make it impossible to adapt to the more globalized world. Americans need
Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes
Global stratification has in cooperation a positive and negative impact in the United States. In the United States the stratification is usually through rendering to power and wealth. This has directed populaces from the other areas of the world pursuit for immigrating interested in the United States. Global stratification is demarcated as the inequality between countries in the world. The metamorphoses in rich and poor is the countries and rhea pattern of global stratification be situated interventionism, world system, culture of poverty and dependency theories. As insight of a positive aspect of Dunne, R. R., & Dunne, M. (2011) China, G.M. says the nation account a quarter of its global sales in the complex arena.GM has established ways
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
The phenomenon has created major suffering for many American and as this outsourcing continues to spread, Americans will demand action (R. Hira 2008, p-95). The book also adds that scholars Ralph Goory and William Baumol have shown that even when the basic model of the economics are used trade does not make both the trading partners better off. The trading in one country will have a negative impact while trading in other country will have a positive impact. The country with negative impact will definitely affect its economy. United States economy being the world’s largest economy; historically, it has maintained a stable GDP growth, a low unemployment rate, a high level of research and capital investment funded by both national, and because of increasing saving rates, increasingly by foreign investors. But offshore outsourcing has increased the unemployment rate dramatically in the decade. And so the economy worsened day by day.
As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.
While outsourcing may be beneficial to some of the companies partaking in it, the general consensus is that it ultimately proves to be harmful to the American workforce. The act of outsourcing and shifting many company call centers and technical support teams, or “low skill service jobs,” to foreign countries reduces jobs for those that could truly benefit from them within our own country. The unemployment rate has dramatically increased, and continues to rise, compared to what it has been in years past; yet there are numerous companies which still insist on handing over these “low skill service jobs” to people in other countries such as India. The most obvious and logical reason for outsourcing is reducing costs; people are working for
One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technology and having the same identical skills were paid the same wages, there would be no problem. (Greene, 2006) It's also believed that if the US continues to trade freely with the overseas countries then the powerful drag of their far lower wages will
Everyone tries to achieve the American dream, which is the opportunity for prosperity, success and upward mobility. For a lot of people, they get nowhere near their American dream because they are struggling trying to make a living. Lots of people are losing their jobs due to outsourcing which leads to people not attaining their goals of being in the higher class or even middle class status. So, what exactly is outsourcing? Outsourcing “occurs when an organization transfers some of its tasks to an outside supplier” (Gnuschke 1). In other terms, outsourcing is when a company shifts its business to a different country to produce goods and services at a much cheaper rate. A lot of people argue that outsourcing is bad for America while some people believe that outsourcing is actually beneficial for America. While outsourcing causes goods to price drop in America, outsourcing causes a lot of jobs to be lost which can cause an
The main goal of a business is to break even, spending about the amount as profits gained, or gain a net profit and expand. While expanding is expensive, companies will attempt to outsource jobs to different countries for a cheaper cost . Outsourcing is an issue for multiple unemployed and employed Americans, where the businesses could be supporting families by creating jobs for those who need them. Flatworld solutions, a company made to help businesses outsource jobs, would argue, “You can get your job done at a lower cost and at better quality as well” (Flatworld). It does lower the cost,
The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.
Outsourcing manufacturing jobs overseas has the additional benefit of promoting capitalism and free enterprise in many countries that have been run by communism and totalitarianism governments. Many political scientists and economists believe that by increasing economic interdependence with the United States, these foreign nations are more likely to develop into robust democracies and more likely to establish a middle class of their own this fact can be used by corporations such as Nike to justify outsourcing to these countries. [4]
Social stratification defines any structure of inequality that persists in a society across generations. Social strata are groups of people — who belong to the same social class or have the same social level. Social strata are organised in a vertical hierarchy. In the early societies people shared a common social standing. In the hunting and gathering societies there was little stratification: men hunted for meat while women gathered edible plants. The general welfare of the society depended on the mutual sharing of goods between all members and no group emerged as better off than the others.