Globalization: A Closer Look
Target a multinational corporation/international company and the practice of “outsourcing” to third world countries. Some examples of MNCs (multinational corporations) would be Nike, General Motors, Ford, Qwest, and Fender Music. Research its effects on local culture.
Write a summary and analysis of 500-750 words and include the following:
- How does global stratification impact local culture? What are the positive and negative effects?
- How does global stratification impact the United States? What are the positive and negative effects?
- Who is the biggest “winner” in this situation? Explain.
Global Stratification -Nike
Nike is a multinational corporation that has many of its operations outsourced outside the country. It does not own any of the factories that deal in its products as most of its activities are outsourced to third parties in the developing world. It has an extensive supply chain, which consist 42 countries that house the 700 factories that make its products. Nike is, therefore, a giant outsourcing company that has most of its operations in other nations other than the United States. Though it has faced many challenges as the use of child labor in its supply chain, it has been able to clear its name and ensure that the laborers in the making of its products are catered for and treated fairly. Nike has affected the various countries in which it is located by providing jobs through third party companies. The third party companies thus provide employment in the different countries like Vietnam thereby improving the living conditions of the local people. Some of the third parties usually abuse their mandate in manufacturing goods for Nike. As such, they use cheap labor with poor working conditions though the companies have sought to change their manufacturing processes abroad.
Global stratification is one of the systems of stratification in the world that defines the various inequalities in the world (Bergesen & Bata 2015). As such, global stratification shows the different economic differences between nations regarding tends to show the various inequalities that affect opportunities, resources and privileges that are positioned according to social hierarchy. Global stratification has, therefore, differentiated countries according to their wealth. Many nations are stratified according to their wealth and most countries in the developed world are far ahead of those in the developing world. Global stratification affects local culture according to the wealth of the countries. If it is a low industrialized country, the living standards are usually low, and the economic vulnerability of the respective country is high. While in industrialized nations, the standard of living is high.
Global stratification affects the United States significantly since it is one of the most advanced and wealthy nations in the world. Money is a determinant when looking at global stratification. Therefore, more companies in the United States are outsourcing jobs that would have been given to the citizens of other locally. As a result, unemployment increases as more people are laid off because of outsourcing in the multinational companies. The search for better profits by the respective companies and opting for outsourcing thus affects the United States negatively. The positive side of global stratification means that more businesses in the United States produce goods at home that are exports to earn the country more foreign exchange. Expertise is also exported to the United States where the standards of living are further improving. As such, the United States benefits greatly regarding exporting education, especially in its campuses. The United States one of the most advanced educational system in the world, which has earned it many educational visitors from many parts of the world. It is also ahead regarding technology and has contributed significantly to various innovations in green energy, which most countries globally have adopted. As such, it gets it wealth diversely.
The United States tops most countries regarding wealth distribution and opportunities that are available to the population (Korzeniewicz & Moran, 2009). The United States has one of the strongest economies which creates has significantly benefited its people regarding a stable currency and market for its companies products. The poor in the United States cannot be compared to those in other countries. The high standards of living are drawing more immigrants who are further taking on jobs in the United States (Andersen & Taylor, 2008). The United States has thus established itself as a country that has great wealth regarding the various industries and organizations. The United States, therefore, has topped the list regarding its industrial, technological and business prowess.