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globalization trends

Analyzing two globalization trends (e.g., outsourcing, e-commerce, global consumption patterns). Analyze the factors below
o Identify the reasons for the trends.
o Identify non-North American countries affected by these trends.
o Explain how these countries are affected by these trends.
o Identify organizations/industries that are facilitating the trends.

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The first trend selected for this assignment is outsourcing. As we all know, an increasing number of global companies from developed nations such as USA are outsourcing a part of their processes, tasks or activities to service providers in low cost nations such as India, China, Philippines or Eastern Europe, or setting up their own captive units/branches in these nations. The primary rationale behind setting up outsourcing operations or selecting service providers in these nations is to capture tremendous comparative advantage offered by these nations in terms of cost of operations. These countries offer huge pool of highly educated, English speaking workforce in various fields such as technology, life sciences, customer service, etc. at much lower costs as compared to developed nations, making it possible for global companies to set up centers to carry out some of the tasks at lower costs in these nations.

Further, companies are able to scale up their operations by expanding operations at lower capital expenditure in these nations and exploit natural resource, labor force and other resources in these nations to cater to various markets across the world.

Some of the non-American countries that have benefited from outsourcing trend include emerging markets like India and China, small nations such as Philippines and countries in Eastern Europe. These countries have become hub for ...

Solution Summary

Analyzing two globalization trends (e.g., outsourcing, e-commerce, global consumption patterns).