How Can America Prevent Salary Dumping - Assignment Example

The government can address this by penalizing through the imposition of high taxes those companies who are subcontracting or exporting jobs abroad.  This will in effect discourage companies to export jobs because it will become expensive to subcontract jobs.  This arrangement is still possible because the government did not prohibit companies to relocate work but only formulated a strategy that does not give business incentives to export jobs. 

1. Explain the importance of East Asia as an economic powerhouse. Is economic or political power shifting from North America (and specifically the United States) toward East Asia? Explain. Which historical and economic reasons might prevent East Asia from acting as a unified region in world politics?

In economics, the US economy is about eight times bigger than China and has also a massive industrial and technological complex that can sustain the output and growth of its economy.  Its currency is still used as the world's reserve currency and it is not likely that the US dollar will be replaced by other currencies soon (Business Monitor International, 2009 pg. 23). China on the other hand lacks multinational corporations and does not even have its own industrial complex making its economy heavily dependent on Western enterprise

Also, the huge size of the US economy enables it to allocate a military budget equaled by none.  It only allocates 4% of its total GDP on defense but due to the sheer size of its economy, this translates to a $600 billion military budget (Jinghao, 2008).  The US has also the most advanced weaponry in the world.  US military arsenal is already capable of stealth combat with its F22 fighters and B52 long-range bombers.  To date, the US has already completed the informationalization of its military that is leading to the “no man”, networking orientation which is a powerful global combat strength (Pastor, 2001).