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I203+Study+Guide+-+Exam+2-2-1

Outsourcing is the relocation of goods and services

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Outsourcing is the relocation of goods and services as a cost-reductions strategy and to increase operational flexibility, related to deregulation and privatization Offshoring is describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. During the 1980s, the means to development was liberalization, in particular, privatization of public functions and the “freezing” of markets for labor, money, goods, and services, a neoliberal ideology. This neoliberal ideology served to guide structural adjustment policies as the precursors of the globalization project. A new belief in free markets and comparative advantage led to a global assembly
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line and an increase in market competition, which in turn leads companies to using outsourcing and offshoring in order to reduce costs. 3. What are the 4 main characteristics practices of the Globalization Project? Include specific examples of how these are manifest. Outsourcing as the relocation of goods and services as a cost-reduction strategy, an example is companies outsourcing to India and China, where labor costs are cheaper. Displacement is manifested in the fact that unemployment has increased from 10 million to 50 million from 1970s to 2000s. The global care chain= women displaced Informalization as manifested by the casualization of labor and the breakdown of unions as well as in increase in illicit activity. Recolonization as manifested with China’s impact on Angola, because one-third of China’s oil exports come from Angola and also there has been in increase in internal colonization within countries. 4. Explain the concept of “contradictions between capital and labor” as it relates to the globalization project. Labor is considered as a type of capital as a factor of production. Capitalism in its various forms often exploits labor, even more so in the Globalization project. Because while capitalists get to use the global supply chain and outsourcing to decrease costs and keep production flexible, global inequality is one the rise as seen by rising unemployment and the deepening of extreme poverty. 5. Explain the legitimacy crisis of the globalization project. The legitimacy crisis of the globalization project started when the promise of development began to be questioned due to the deepening rather than reducing of worldwide inequalities and a continual public opposition to neoliberalism, which could begin an era of protectionism depending on the attitudes of the general public. This backlash happens more in areas that globalization has not affected or had an adverse affect on. 6. List, define, and provide examples of 3 different countermovements as defined by McMichael to the Globalization project. How are these related to globalization in the 21 st century? Fundamentalism is one countermovement to the Globalization Project. It reintroduces simplicity and security of traditional codes of behavior, meaning that people tend to cling to ideals in times of crisis and usually thrives in places where globalization is not working. In the 21 st Century, examples of this can be seen in organic food, home-schooling as well as Amish societies.
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