I agree with you that globalization has its pros and cons. Like you said, “globalization allows more revenue back to its corporation and ultimately its shareholders are happier”. Especially when gas prices has affected the airline industry, it now makes sense why when you call to make your airline reservation to US Air (an American company) that the other end of your phone line will most likely have an accent from China. The bottom line is globalization has allow U.S. company to outsource jobs that was originally handle from people in the U.S. to a person making the reservation from another country, it’s just cheaper to pay a person making a reservation in India than a person from here. A recent report shows that US Air airline spends about $20,000 a minute on gas alone. That is an increase of about 30% more when compared to two years ago. With that said, an average U.S. personnel making a reservation for US Air makes about $10 an hour, now when outsourcing the same job to Chinaa, US Air can save about 60% by paying $4 an hour. By doing the math alone you can see why outsourcing is necessary for US Air and majority of airlines. I concur with why you think globalization has helped corporation increase their pocket weight and the shareholders obtaining a happier face!
Thomas Friedman author of “The World is Flat” is a perfect example of how Information Technology and Globalization works together. Globalization is real, it is here and if you think globalization has played a big impact in your business now, it has just begun. With that said, every business should be encouraged to be adapted to globalization and if you aren’t already your business will miss the boat, or simply, the boat will sink!
Friedman’s example of how the advancement of IT and globalization allows the corporation at Nikes to receive an order through their website but ultimately none of their own employees has to actually touch the product. In fact, because of the advancement of IT...