Economics_Ch02

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Unformatted text preview: e would still be losing old jobs and getting new jobs every day. QUESTION: I have heard of the word “out- sourcing” but not “offshoring.” Do these two words mean the same thing? ANSWER: Yes and no. Offshoring is a particular kind of outsourcing. Outsourcing refers to any work done for a company by people other than the company’s employees. More and more companies are outsourcing work to people who live in other countries. This special kind of outsourcing is called offshoring. Sometimes people use the word outsourcing when the correct word is offshoring. It is not uncommon to hear “Yes, many U.S. companies are outsourcing jobs to India and China.” The correct word is offshoring. ne measure of globalization is the dollar amount of exports for a country. The greater the value of a country’s exports, the more globalized it is. For example, in 1998, the United Kingdom had $271 billion in exports, and in 2003 it had $307 billion in exports. So, based on the value of exports, the United Kingdom was more globalized in 2003 than in 1998. Here are the export values for several countries in 1998 and 2003. O Exports in 1998 (billions Country of dollars) Austria $ 63 Canada 220 China 183 France 303 India 34 Japan 374 Mexico 117 Norway 40 Russia 74 Sweden 85 Thailand 52 United States 672 Exports in 2003 (billions of dollars) $ 89 285 438 361 59 449 164 69 135 102 78 716 More Power to Big Corporations Many of the critics of globalization argue that the process will simply “turn over” the world (and especially the developing countries of the world) to large corporations headquartered in wealthier countries such as the United States, the United Kingdom, and France. In fact, in the minds of many people, globalization is not as we have defined it in this chapter; rather, it is the process of corporatizing the world. Instead of governments deciding what will and will not be done, large corporations will assume the responsibility. The proponents of globalization often point out a major difference between a corporation and a government. First, a government can force people to do certain things (pay taxes, join the military). No corporation can do the same; instead, corporations can simply produce goods that they hope customers will buy. Additionally, offshoring The term used to describe work done for a company by persons other than the original company’s employees in a country other than the one in which the company is located. Section 2 Globalization 49 02 (030-053) EMC Chap 02 11/17/05 4:14 PM Page 50 The Continuing Globalization Debate he Globalization Institute operates a blog at www.emcp .net/globalizationinstitute. If you go to the site, you will find numerous articles and essays on globalization. At the left of the page you will find categories such as agriculture, outsourcing, immigration, and more. Click on one of the categories and read a few of the articles and essays. For instance, you will see “Cobden,” which stands for Richard Cobden (1804–1865), w...
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This document was uploaded on 01/16/2014.

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