Business Theory

Paper Summary:

In this article, the writer discusses that for companies to survive in today's marketplace it is almost essential that they spread their resources overseas. The writer examines the issue of outsourcing and mentions that there is the ever-present concern that outsourcing irrevocably harms the domestic workforce. The writer points out that obstacles such as oppressive governments and local laws mean that free trade alone is far from capable of addressing the issue of global disparity of wealth. Furthermore, even if it could be expected to increase the living standards in developing nations, outsourcing will inevitably harm the working class in developed nations like the United States. The writer concludes that outsourcing may possibly improve the lives of foreign workers, but it definitively improves the prospects of American corporations and harms the American worker.

From the Paper:

"The global and social division of wealth, despite the new world economy, has continued to draw a sharper and deeper contrast between the rich and the poor of the world. Although from a purely capitalistic point of view, a company spreading their resources in search of cheaper means of production is perfectly understandable and should lead to eventual global equality of wages; many of the locations where the cheapest labor is found have governmental factors that inhibit class mobility. Despite the obvious advantages of capitalism and its emergence onto a global scale--increased production and availability of products--it tends to increase the gap, actual and proportional, between the upper and lower classes. This fact is true not only within countries with capitalist economies, but between nations with capitalist economies and developing nations."

Sample of Sources Used:

• Brown, D. Clayton. Globalization and America since 1945. Wilmington, DE: Scholarly Resources Inc., 2003.
• Greenspan, Alan. "Banking in a Global World." Chicago: Delivered to the Conference on Bank Structure and Competition, May 6, 2004.
• Krupp, Neil. "Global Compensation Planning." Compensation and Benefits Management, vol. 18, iss. 2, 2002.
• McEachern, Cristina. "Best Buy Reassesses IT Needs." VARBusiness, vol. 20, iss. 18, 2004.
• Pelham, Denise. "Is It Time to Outsource HR?" Training, vol. 39, iss. 4, 2002.

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