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Impact of Globalizaiton on United States

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What is the impact of globalization on the United States as it relates to technology, trade, integration, offshoring and outsourcing, migration, transportation, and environmental pollution? Also, what is the impact of globalization on the United States as to how it relates to the impact of theses forces on domestic companies, workers, indigenous cultures, and other demographic groups within the country? What implications should we draw on the issues and their impact on international management practice and the political environment?

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The answer to this problem explains the impact of globalization on the United States. The references related to the answer are also included.

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In compliance with BrainMass rules this is not a hand in ready assignment but is only guidance.

Impact of globalization on the United States is many-fold. The first impact is on jobs. Good jobs have drained from the US economy and have reached China, South East Asia, and other countries where the workers get lower salaries. With globalization outsourcing and off shoring has increased. When a company contracts out its HRM functions, book-keeping, and software making it is outsourcing. Outsourcing can result in specialized services, lower costs, and no need for capital investment. In off shoring instead of availing itself from domestic service providers, firms may purchase goods or services from overseas providers. For example, with globalization Mexican firms supplied auto parts to Detroit automakers. Globalization has led to widespread off shoring and thousand of US jobs have been lost to foreign workers. However, the sum total of business, professional, and technical services that US firms have purchased is lower than the services that US firms have sold to foreign companies. The in sourcing by US firms is more than out sourcing by US firms. Even though US based multinationals created jobs overseas, they also created a larger number of jobs in the US. The services that were in sourced include computer programming, legal services, engineering, consulting, data entry, telecommunications, banking, logistics, and R&D. The off shoring of low-level service tasks such as call center operations not only increases the profits of US firms but also leads to further growth including the creation of new jobs in higher level service occupations such as computer designers. Globalization has also speeded up technological development. These have accelerated service imports to the US and have also speeded up US service exports. Further, the wide global markets available for US multinationals make it possible for them to ...

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Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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