Economics of Race and Gender and Globalization - Term Paper Example

Economics of Race and Gender and Globalization Introduction We are presently living in a borderless world. With the advent of online and electronictechnology, economic transactions are now faster and easier to accomplish. Electronic problems are being transacted halfway across the globe by call-center agents from Asia. Medical notes and dictation from hospitals in the United States are being transcribed elsewhere by medical transcriptionists in India and the Philippines. Raw materials for manufacturers in the Europe and the U.S. come from various developing nations in Asia and Africa. As we go about our daily business, most of us are unaware that the clothes we wear, the cars we drive, the food we eat are an amalgam of the efforts of different people from different parts of the globe. Indeed, we are now living in the age of globalization. And this age has ushered in a more colorless and diverse economy and workforce. Issues of race and gender are slowly being dissipated as it is becoming clear that differences in race and gender have no significant impact on productivity. However, race and gender issues are slow to dissipate, it surfaces every now and then in the business world and in the workforce. This paper shall review articles discussing how gender and race impact on the global economy. It shall explore how race and gender is slowly becoming a non-issue in the economic world, yet still so much an issue in some instances and some parts of the world. Body Companies Say Work Force Diversity is good for Business Three leading companies opine that diversity is extremely beneficial for business. “In business, diversity is not about color or gender, but about new ideas and new energy” (Hernandez, 2004). A valley-based grocery chain, Basha, Inc., is an extremely diverse business which employs and caters to a very diverse workforce. The company’s owners have minority roots, and they have translated these roots into a highly diversified business. They have applied racial diversity to their 150 stores across the U.S., with each store adapting a culture which is in keeping with the area it is located in. And while they adapt to their area, they make sure not to overlook the minorities, including the women, the disabled and the older employees and patrons (Hernandez, 2004). Other companies have also followed suit. The Dial Corporation and Wal-Mart Stores, Inc. have adapted a diverse set-up in their businesses. The corporation caters to the needs of people across 5 continents and about 75 countries. And they have easily accepted the importance of diversity in this global economy. Wal-Mart Stores, Inc., with markets in different parts of the globe, admits that good business cannot be attained without diversity. They stock items which are very much in keeping with the diverse background of their location. And their executives and managers emphasize that it is not a matter of diversity, but of being able to serve the customer well (Hernandez, 2004). Companies Ramp up Diversity Efforts Many multinational corporations are recognizing the need and importance of diversity in the present age of globalization. Merrill Lynch has recognized the importance of diversity in globalization when it joined forces with Brazilian investors for a multi-million dollar company deal. In the past, many U.S. companies could not keep up with the international workforces who were more likely to speak different languages. And now U.S. companies are recognizing the relevance of diversity in their companies, employing a diverse multilingual workforce. “Like cultural chameleons, they’re adapting to hundreds of countries, languages and religious practices…They’re recruiting and hiring diverse talents from Shanghai to Mumbai, India” (Iwata, 2009). These companies are catching up fast with other international companies in creating a diverse global atmosphere. And this globally diverse atmosphere is ushered in by companies through their moves to go native, to recognize religious differences, to allow cross-border networking, and to find global talent (Iwata, 2009). Going native has been adapted by the Weyerhauser company when it made a habit of hiring locals and people who were native to the area they were operating in. It has hired hundreds of aborigines in its plants, availed of aboriginal suppliers and contractors, and signed logging ventures with tribes in their areas of operation. In recognizing religious differences, Texas Instruments, Hewlett-Packard, Ford Motors and other companies have established a religious-based employee network in the workplace. “Some corporations offer chapels or prayer rooms for employees or give their workers time off to worship on special religious days, from Jewish Sabbath to the Muslim holy day of Friday” (Iwata, 2009). In keeping with cross-border networking, the agricultural company John Deere has taken to hiring more than half of its employees outside the U.S.; it has employees in Latin America, Asia, Russia and other nations. Affinity and diversity support groups helped this company come up with a very diverse workforce in its different locations. In finding global talent, various multinational corporations “are courting top management, financial, engineering and sales talent at elite universities in Asia, Europe and Latin America” (Iwata, 2009). And for companies to really be globally competitive, they have to consider the talents and skills of workers abroad as well as within their borders. However, diversity in the global economy is still very difficult to implement for many companies. American backlash for preferred workers abroad is one of the obstacles to this economic move. Stronger competition from foreign companies, the complexity of doing business abroad, and the refusal of other companies to consider diversity in their companies is holding back the diversification process. Chinese companies are too mindful of extreme regional and dialect differences, Latin American countries tend to focus on class and income differences in people, Japanese companies worry about differences in knowledge of the younger and older generations. As to gender, some countries focus and prefer women workers, and some Third World countries tend to treat their women workers harshly. The inevitable problem of how to deal with people’s differences in the workplace is at the very core of diversity. As companies open their minds to a diverse workforce, they also have to deal with the problem of setting up an environment that would satisfy everyone’s needs and preferences. Many companies do recognize these problems, and they know that these problems should not put off the diversification process because the globalization of the economy is already happening, whether they like it or not. Thanks to Global Market, Car Designers are a Worldly Bunch Various car designers used to be less than impressed about designs from Asian competitors. However, with the advent of a strong global economy, the automobile industry has become a more diverse field and world. Car designers from all parts of the globe are now on hire to various companies, thereby producing similar car designs and decreased differences in looks. Car designs from different countries now match each other in size, looks, and power. Designers are mindful of the fact that they are designing for a diverse group of customers. Kia is embracing this trend in its business. In just one of its design studios in the U.S., Kia has Korean, Italian, Venezuelan, Chinese, and American designers in its employ (Woodyard, 2007). And they work harmoniously with each other, bringing their own uniqueness to the cars they design. Hamish McRae: The Real Summit Has Been Between China and the US At present, the world is caught in the clutches of a global economic crisis. As many nations are struggling to provide employment for their citizens, the formerly established bonds of racial and gender diversity are being threatened. Protectionist trade and practice is slowly reasserting itself in different countries and different companies. Some nations have withdrawn from trade agreements; Britain has roughly adopted a “British jobs for British workers policy”; U.S. companies entitled to financial help were those who favored U.S. employees; India has banned imported Chinese toys; China has banned imported Irish pork; and elsewhere, more protectionist measures are being undertaken by various companies (Independent, UK., 2009). But in a way, the economic crisis is having a positive impact on the emerging economies of China and India, while the old developed world is becoming less of an economic Mecca. Many economic and political leaders do acknowledge the power and the inevitability of a global and racially diverse economy. “Keeping global growth moving, not just this year or next, but for the next decade – indeed the next generation – depends first and foremost in the relationship between the US and China. The relationship between the major players, India, Russia and the EU, matters too of course but not so much” (Independent UK, 2009). The global economy is giving other races an opportunity to shine, and in a way, tipping the scales towards countries which were economically struggling in the past. Asian Voices Gain Force as Crisis Drags On The present economic crisis is actually giving a voice to emerging economies in Asia. The recent G20 has managed to bring much needed attention and investors to emerging economies. Many nations and businessmen are recognizing the potential of these markets and have taken more definitive steps in allowing these nations to flourish and take flight. China is one of these emerging economies. Recent economic figures indicate that it is presently the third largest economy, overtaking its neighbor Japan in total economic output. China is voicing out how important it is for other countries to understand and accept its business practices, pointing out that its communist ideals should not be a hindrance in efforts to do business with its companies. They opine that their communist rule allows them to do away with the complexities of the democratic process (Kurtenback, 2009). There is merit in these opinions because the strength of each economy and each culture is in what makes it different and unique from all the others who may offer the same deals, products, and services. Local Universities Put More Focus on Diversity Efforts to achieve racial diversity are being seen in basic academic settings. Many business schools are clearly gearing up and preparing their students to engage in a more racially diverse economic world. In the United States, the population of minority groups is increasing and they “represent human capital for our labor force and should have equal opportunity to fulfill their potential” (Moore, Sr., 2007). With this in mind, many business schools have adapted a more racially diverse curriculum for their students. The Wright State University now requires their students to complete at least two courses on cultural and social foundations of non-Western countries. The school also offers a variety of courses on diversity to choose from like, Women’s studies, as well as Asian, and African American cultural subjects. These subjects help students make sound and racially sensitive decisions in a diverse workplace and to teach them marketing strategies and employment laws on gender, age, and racial discrimination. The University of Dayton has also adapted modules on diversity and ethics into their management and human resource coursework. This curriculum has been widely supported by the faculty and students of these business schools. They realize that the trend of globalization is growing and is inevitable. And for the students, it “will be to their advantage to understand the dynamics and challenges of cultural diversity and global competition” (Moore, Sr., 2007). This article clearly illustrates how important diversity is in the present globalization climate. Incorporating lessons on diversity and globalization in the academic setting is an innovative move towards producing a future generation of business leaders who understand and appreciate diversity in the business environment. Productivity through Diversity Various business schools, especially in their MBA programs, are attracting a diverse group of students. This diversity is presently proving to be a very desirable development as students are exploring how best to work in a diverse and heterogeneous team. This blending of cultures in the academe is mirroring the trend in the present global economy, and potentially making them worthy assets in the business world. When students interact in a diverse group, they learn valuable conflict management skills that they can later apply and anticipate in a global marketplace. Conflicts and differences can help a group be more innovative and unique in resolving issues and differences in opinions. In the process of learning to operate in a diverse setting, the trend is laid out for future adjustments made in the name of diversity in the global economy. Members of a group who tend to agree with each other are more prone to producing good results in a harmonious environment. Those in a more diverse set-up are most likely to take too long to decide on the simplest matter with members likely ending up arguing with each other. However, in the longer run, a more heterogeneous set up will outlast the homogenous group setting. Some analysts point out that what is acceptable for the team, may not always be the best output that a team can produce. In the end, “teams with a very stable membership deteriorate over time because members become too similar in viewpoint to one another or get stuck in ruts” (Walker, 2006). How Will the Recession Affect Gender Roles at Work and at Home? At present, the global crisis is very much dictating who gets to be laid off and who gets to go to work. And women are finding it easier not to be hit by this economic crisis because they are involved with jobs which are not too badly hit by the economic recession. The hard-hit jobs have been mostly in manufacturing, banking and construction – areas where many men are involved in. But women are mostly in the education and the healthcare sector, and this has worked to their advantage because they get to keep their jobs. Most women have now become the breadwinners of their family. All of a sudden, the gender lines are weighed in on the side of the females. And this goes to show that in the face of the global economic crisis, gender biases have no place. What would matter in the end is the skill needed to accomplish the task at hand, not whether or not the person executing the work is male or female. In U.K., Slump Poses Challenge to Support for an Open Economy This article by Alastair MacDonald (2009) discusses that in the United Kingdom, the present economic crisis is stalling efforts to attain a more diverse global economy. In Grimsby, England, Italian employees working in an oil refinery are the object of wildcat strikes by about 2000 British workers who strongly feel that British jobs should be for the British only. Although UK Prime Minister Gordon Brown recently emphasized his support for a global economy, this is proving difficult to implement with the U.K. experiencing a deep recession. And so, wildcat strikes like the one in Grimsby are becoming commonplace in the U.K. British workers are disgruntled and frustrated about having a hard time finding work, and more so when available work is being given to foreigners. Unemployment in the U.K. is increasing at an alarming rate. In the fourth quarter of 2008, it hit 6.3%, and projections indicated that such numbers would continue to rise. And British citizens are partly correct in assuming that such unemployment rates are owed to foreign workers. Last year, the number of unemployed British workers increased to 27 million and the number of foreign workers increased to 2.4 million. But their unemployment concerns will more likely escalate as Prime Minister Brown’s Labour party eased barriers to employment and foreign investment. This move has prompted interest from Danish, Japanese, and German investors. Immigration into the UK has also been made much easier as it has now become easy for foreigners to avail of work visas and permits. In the face of various trade groups and treaties which bind many countries to each other, globalization is now the inevitable trend in the business world. And globalization has opened up many British fishing harbors like Grimsby and Immingham to various foreign companies. This has not benefited the locals in these towns who compete with foreigners for jobs in both British and international companies. Those in the manufacturing business also suffer from the lack of support from the British government. They point out that the foreign manufacturing firms are the ones who are making big money in Britain, and “manufacturing in Britain has been allowed to die, it’s had no support from the government and companies have been allowed to be taken over by foreign firms” (Todd, as quoted by MacDonald, 2009). But still, it cannot be denied that many manufacturing firms in Britain have also benefitted from globalization. They have hired foreign workers and have exported a big percentage of their products. This article proves that globalization has ushered in opportunities for the business world to employ a more racially diverse work force. However, in the face of the present global economic crisis, diversity is becoming more difficult to achieve. And yet, the doors of globalization, now opened, is not proving hard to close. Discrimination at Work Common The International Labour Organization (ILO) reports that ethnic and gender discrimination is still very much prevalent in the workplace in various companies and countries around the globe. The discrimination is usually seen in job opportunities and salaries. Women’s advancement opportunities are often limited and hampered by a male-dominated management set-up; Black Americans, Australian aborigines, Gypsies in Europe have a hard time gaining employment, being the less favored minorities. Various nations have ratified a treaty protecting workers from discriminatory practices; however, the U.S., China, Singapore, and Thailand have yet to sign this treaty. And simply ratifying the treaty is not sufficient in ensuring that discrimination does not occur in the workplace. Various experts emphasize that social policy measures must also be set in place in order to ensure that workers are protected against racial and gender biases. The International Labour Organization points out success stories in different nations where anti-protectionist measures were set in place. The ILO cites Australian companies who have wholeheartedly embraced the practice of equal opportunities for their workers, and how this move increased the productivity of their workers. Many US companies also report “that firms with affirmative action programs also had more streamlined and efficient recruitment procedures for all their employees” (Woodyard, 2007). The ILO report affirms how fragile this diversification process is, but it is a process that is slowly and surely being accepted by more and more corporations from an increasing number of countries. New York Restaurants Favor White, Male Workers: Report Although the New York population carries a very eclectic mix of cultures and ethnicity, racial and gender biases are still prevalent in some business establishments in the city. These gender and ethnic biases are seen in the restaurant industry. In a research conducted by The Restaurant Opportunities Group, results reveal that the restaurants were most likely to hire white applicants over non-whites and males over females. In the study, applicants with more or less the same qualifications were sent out into the city to apply for work, and most of those who got favorable responses in their applications were white and male. The study was also able to reveal that women were most likely to be sexually harassed in their workplaces, and they were most likely to find advancement opportunities hard to come by, sometimes, not at all. The results of this research are surprising considering that immigrants presently dominate the food industry. Many of these ethnic minorities also find it difficult to advance, whereas, whites are likely to gain advancement opportunities. “The majority of management and higher wage positions like waiters and bartenders were awarded to white workers, while nonwhite workers commonly held lower paid positions like busboys and food runners…” (Kearney, 2009). Many restaurateurs defended their decisions in preferring white applicants by saying that nonwhites were less experienced and had trouble with the English language. These preconceived notions are true in some instances, but not all the time. These prejudices stem from inherent assumptions when hearing foreign accents. Strides taken to achieve a more global and diverse market are hitting a lot of snags and bumps, mostly owing to long-existing prejudices that have yet to be shaken off. Conclusion The articles above illustrate how issues of race and gender are slowly dissipating in the face of the growing trend of globalization. Various multinational corporations have taken to adapting a more ethnically diverse workforce, adjusting to the needs of the areas where their branches and subsidiaries are found. These corporations recognize the importance of diversity as the economic landscape is now starting to be more global. Various corporations also recognize that in order for them to be globally competitive, they have to look for talented, skilled, and intelligent workers abroad, not just in their own shores. These corporations very much realize that competence and skill has no color and has no gender. And as these lines are blurred, the physical borders that many nations have come to draw against each other are being blurred as well. Diversity in this global economy however, is easier said than done. With the present economic crisis, many workers feel resentful of the fact that they cannot obtain jobs in their own countries, while foreigners are getting jobs in their own towns. Other more myopic companies also cling to their protectionist ideals, not wanting to open up their minds to a more diverse work setting. Some establishments are also more likely to still be gender biased, not allowing the same opportunities for women. And these hindrances are slowing down the globalization and diversification process. But, the signs are good, more and more businesses are opening their minds to diverse possibilities. For diversity to truly be achieved, time, patience, and perseverance may be all that is needed. Top of Form Bottom of Form Works Cited Hamish McRae: The real summit has been between China and the US., Independent UK.com, April 2, 2009. Retrieved 08 April 2009 from http://www.independent.co.uk/opinion/commentators/hamish-mcrae/hamish-mcrae-the-real-summit-has-been-between-china-and-the-us-1659891.html Hernandez, Ruben. “Companies say work force diversity is good for business” Phoenix Business Journal, October 15, 2004. Retrieved 08 April 2009 from http://www.bizjournals.com/phoenix/stories/2004/10/18/focus2.html Iwata, E. “Companies Ramp up Diversity Efforts” ABC News, 2009 Retrieved 09 April 2009 from http://abcnews.go.com/Business/story?id=3358294&page=1 Kearney, C. “NY Restaurants Favor White, Male Workers: Report” ABC News, March 31, 2009. Retrieved 08 April 2009 from http://abcnews.go.com/US/WireStory?id=7220922&page=2 Kurtenbach, E. “Asian Voices Gain Force as Crisis Drags On” ABC News, April 2, 2009. Retrieved 08 April 2009 from http://abcnews.go.com/International/WireStory?id=7237841&page=3 MacDonald, Alistair. “In UK Slump Poses Challenge to Support for an Economy” Wall Street Journal Online, March 5, 2003. Retrieved 08 April 2009 from http://online.wsj.com/article/SB123620961006734161.html?mod=relevancy Moore, John, Sr., “Local Universities Put More Focus on Diversity” Dayton Business Journal, May 18, 2007. Retrieved 08 April 2009 from http://www.bizjournals.com/dayton/stories/2007/05/21/story8.html Silverman, Rachel Emma. “How Will Recession Affect Gender Roles at Work and At Home” Wall Street Journal Online, March 26, 2009. Retrieved 08 April 2009 from http://blogs.wsj.com/juggle/2009/03/26/how-will-the-recession-affect-gender-roles-at-work-and-at-home/?mod=relevancy Walker, Paul. “Productivity Through Diversity”. CNN.com, September 1 2006. Retrieved 08 April 2009 from http://edition.cnn.com/2006/BUSINESS/08/16/execed.diversity/index.html Woodyard, C. “Thanks to global market, car designers are a worldly bunch” ABC News, 2007 Retrieved 08 April 2009 from http://abcnews.go.com/Business/Story?id=7284508&page=4 Read More