Essay --

Globalization Jobs How Foreign Laborers Can Affect the U.S. EconomyThe economy is becoming increasingly global. Business face knotty decisions when conducting operations, as business boundaries atomic number 18 no longer stated in national call, but instead in global terms. For instance, management for companies ranging from medical info technology to software engineering must ask questions, such as From what company should our company purchase input parts for our latest medical symptomatic equipment? Or should we source our manufacturing process for laptop computers overseas? Or how will globalization affect return to our investors for our latest software development subsidiary? Outsourcing is among star of the economic decisions businesses of all sizes must face. U.S. Corporations have high incentive to outsource job functions to foreign markets, as the wages of a foreign worker are a fraction of the domestic counterpart. The incentive is especially high to outsource to emer ging markets such as China and India. According to a study conducted by the U.S. Bureau of Labor Statistics in 2010, a production worker in India would work for an average of 92 cents an hour as compared to a U.S. worker who would not be able to legally obtain employment for any less than the U.S. minimum wage of $7.25 an hour (U.S. BLS, 2010). At that time, India labor cost just 13% of U.S. labor. Imagine a U.S. corporation competing with businesses that incur labor costs that are only 13% of the U.S. equivalent in order for that business to remain profitable, they would outsource as many functions as possible. Outsourcing trends are unlikely to change, at least in the short-term future(a). Historically, outsourcing has occurred in labor intensive indust... ...oduct, is a formula that economists engross to measure economic growth. GDP in China has grown at an average ___, whereas U.S. GDP has grown at ___ for the same period of ___. A footing behind this phenomenon is that dev eloping countries typically grow at a faster economic pace than more industrialized nations. When the United States economy was industrializing, GDP grew at a pace of. Modern economic theory demonstrates that some developing nations will eventually approach the economic wealth of more developed nations. In may not happen for at least fifty years, but eventually wage differences will substantially lessen, at least in terms of national boundaries. Foreign labor cost is currently a factor that aids firms in achieving an advantage in the market place. In the far future it is unlikely that the price of labor will be much different across national boundaries.