I read an article about globalization, which is a topic that we haven’t studied in depth in comm101, however it is essential to the business world today. 2.7 million US jobs have been lost to China alone in the past decade as a result of economic globalization and trade liberalization. Companies usually shift their manufacturing operations overseas to less economically developed countries because of the lower cost of labor, less tax and fewer government regulations, which allows them to keep the cost of production to a minimum, and therefore keep the profit margins high. Although globalization sounds like a good phenomenon, what it actually does is lead to in the host countries is exploitation of workers, depletion of natural resources, environmental damage, LEDC economy’s dependency on Multinational Companies. Globalization also leads to the interdependency of economies, which can result in crisises like the world financial crisis in 2008, which was a result of the American banking crisis; or the food crisis in 2008, which was a result of series of global events, such as: the high price of oil, drought in Australia, Chinese people becoming wealthierand thus eating more meat, increased price of fertilizer, etc.
Bibliography
http://www.americanmanufacturing.org/blog/new-report-27-million-us-jobs-lost-over-last-decade-due-growing-trade-deficit-china
Photo retrieved from:
http://www.globalsherpa.org/wp-content/uploads/2011/06/globalization-hands-pic.jpg