Globalization is worldwide global economic has generated more problem them benefits for society - Research Paper Example

?Topic:  Globalization is worldwide global economic has generated more problem them benefits for society. Introduction Globalization is a process which took over the world by the end of 1990s and it changed the global image of many countries including the super power America. The main reason behind globalization was the innovation in the field of Information technology. The globalization and innovation in the Information technology field increased investment prospects for U.S.The elaborate use of IT in the U.S. economy and its acceptance throughout world accelerated the globalization of the world economy. This enhanced the job creation, living standard of people and productivity growth of the country .Globalization brought about significant change in the field of economy, technology and education .Even though globalization has many positive sides the problems it creates to the societies on global level is not less. According to (Akhunov 9)“The explosion of communication technology, either software or hardware made a deep impact on product competitiveness and increased the importance of a world – wide dimension”. Globalization is the main objective of the countries which intend to advance. The world has changed not only with regard to its financial dealings but also on the basis of international trade. The world economy got largely integrated on basis of the flow of goods, labour, capital and through flow of technology andinformation beyond the borders. Globalization has helped the development o f many countries like India, China and Russia. However the risks caused by globalization to developing countries and poor nation are significant. Globalization tends to bring financial down turns and crisis which burdened the fragile economy of developing countries, poor nations and also advanced countries like U.S. Globalization and loss of job opportunity in America The globalization has made the nations of the world more interconnected and America’s increasing connection with the world economy has given negative impacts to its job sector. The Globalization has motivated the American multinational companies to outsource their jobs to developing countries like India and China .American companies outsource jobs to these countries in order to get the job done through cheap labor cost and high technical efficieny.Much of America’s manufactured products are imported from China and hence the country’s own economy is effected by loss of job and production opportunity. In advanced countries like American and U.K. there had been a tremendous demand for high skilled workers and these demands were met by developing nations like China, India and Japan. As per (Overholt) “The shipment of American jobs to cheap foreign labor markets threatens not only millions of workers and their families, but also the American way of life." The most negative impact of globalization is that it give way to income inequality and lower the normal wages of American workers and in return make the rich corporate even richer. This action can also make the economies of other developing countries progress at a staggering rate while collapsing the economy of outsourcing countries .Much of the population in India, China and Eastern Europe has flourished exceedingly while the U.S. work force had to bear the losses. Millions of worker s in America is undergoing global competition with regard to their employment and job skills. Even manufacturing workers who worked in America had to see their jobs leave for other countries where the wages were low. Problem of American companies moving to developing nations The American companies are moving to less expensive labor countries in order to reduce the cost of production and increase their profit ratio. “Hundreds of American companies have moved their businesses to China, lured by cheap labor and low production costs”(Davidson).America is losing millions of money due to these actions by big corporate. It is also seen that many of the companies in China do not even manufacture products with proper quality. America is a huge country with millions of people who are skilled in varied field and if the country loses out jobs in this pattern due to globalization then the economy of the country can be badly hit. Even small and medium sized companies are looking for destination in cheap labor providing countries. If a large economy like U.S. lag behind in providing the citizen with job opportunity then the spending power of the population get weakened. This in turn will reduce the buying power and hence reduce the GDP level of the country. If people are jobless then there would not be money circulation in the economy and also living standard of the people get poor.Multi national companies only concentrate on reducing their cost of production and hence increasing their profit. They are not interested in the future of the people of their own country and this create significant disparity in the income level of people of U.S.The challenge from China is tremendous to U.S.as it is the biggest exporter and manufacturer in the world. Effect of Immigration and technological development on U.S. The innovation in technology has eliminated the borders and motivated the nations to come closer. The world is shrinking in other terms and national borders no more restrict the labor market. The large companies of U.S. and U.K move to developing nations in search of low cost labor and highly educated professional. Moreover technology has made it even easier to conduct financial transactions and dealing over the international boundaries. According to (Tristan)“Technology has enabled companies to explore new markets, which maximize revenues; and new sources of labor, which minimize costs”. Technology also opened boundaries for less developed nation to advanced countries like America .More people from Mexico and India travelled to U.S. to fill in different position needing varied skills. The America has seen a flow of millions of people in last decades to fill in the employment demand put forward by the country. Technology also changed the living standard of people as they started to work faster and got attached more too electronic devices. The people became more mechanical and led a technically driven life where human values had less importance. People from children to old aged got accustomed to computer and cell phones and interact less face to face with people. Social gathering and family interaction minimized which led to distance among people .Globalization also has made the human less hardworking as more of their mental and physical activities were carried out by computer and other advanced technical devices. People are also less physically active as all are addictive to computer and spend hours performing office work or browsing on internet. Improvement in Technology and Increase in Crime The globalization and development in IT field have led to the establishment of call centre and customer care service of American and British companies in India, China or Korea. The city Bangalore in India which is hub to IT employees has taken over all the outsourcing from American multinational companies. In his article(Friedman)has stated that “Bangalore is home to not only Indian firms, but also to outposts of American companies like Dell, IBM, and Delta Airlines, which in recent years have been hiring Indians to handle jobs outsourced from the U.S. Well-educated, ambitious, and fluent in English, young Indians cost a lot less than their American counterparts”. Even the medical and engineering field became sophisticated and advanced and produced services and products of high quality. Once upon a time America economy ruled the world in all terms but things have changed due to globalization .Globalization not only has stolen job opportunities from U.S.,but also has given way to numerous instances of crime. Since technology is at the fingertip of people, they have the freedom to manipulate any system with technical knowledge. Even cyber crime has taken form where criminal and sex obsessed men exploit innocent teenage girls and women for sex. There has been much abduction of girls and women who had interaction with men on cyber chat and got deluded on their false promises. People are also exploited for monetary benefits by scammers and fraudulent people through mail and social networking sites. Conclusion Globalization has changed the face of world as technology and communication have taken a huge leap. It has brought advancement to many sectors of developing nation like India, China and other South Asian countries while impacted negatively to U.S. Due to globalization, American companies tend to migrate to other developing nation where labor and cost of production is cheap. Moreover many service sector and technical jobs have moved to foreign labor market which downturned the job opportunities of American citizens. Americans have been pioneer in technological field and it is unfortunate to see that professions related to IT get outsourced to foreign nations. Huge number of Americans is finding it hard to get jobs even after acquiring best education and technical skill. Even after having higher education, the research and medical developments are undergoing in other developing nations. It is unfortunate that a country with such highly advanced technology and political power is losing out to other nations just because of the look out of business corporate for profit. The technological development has also changed the lifestyle of people dramatically by making them more mechanized. People are under the influence of computer and other modern electronic gadgets and losing their traditional values and concepts. Crime and fraudulent activities through technology has increased and people find it more and more difficult to trust other people and business transactions. Globalization is not a bad process but if it destabilizes a large economy like U.S. then it is definitely not of much benefit. References Akhunov, Ali. Innovation and market globalization : the position of sme's . 1sted.,. Amsterdam: IOS Press, 2000. 9. Print. Davidson, Adam. "Consultant Helps U.S. Companies Move to China ." website for broadcastin g. NPR, 05 december 2005. Web. 9 Aug 2011. Friedman, Thomas. "Globalization: The Challenge to America." Website for News. The Newyork Times, 2011. Web. 9 Aug 2011. Overholt,William. “Globalization's Unequal Discontents”.Website for news.The Washington Post,21 December 2006.Web.9Aug 2011. < http://www.washingtonpost.com/wp-dyn/conten t/arti cle/2 006/12/20/AR2006122001307.html> Tristan, David. "The Emerging Global Labor Market." Website for economic information. Texas Workforce Commission, July 2003. Web. 9 Aug 2011. < http://www.tracer2.com/admi n/uploa de dpublications/633_tlmr0307art.pdf> Read More