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Effect of outsourcing
Outsourcing and the US economy
Outsourcing and the US economy
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Is the world actually flat? According to Thomas Friedman’s book it is. He explored this notion when he took a trip to India, where he noticed the competition for global knowledge. Throughout his book “The World is Flat” he argues that there are ten forces that flattened the world, claimed the best interest for the United States’ is free trade, acknowledged what actions developing countries ought to implement, analyzed how flattening could flounder, and highlights the challenging framework of creativity developing across the globe today. The Ten Forces that Flattened the World November 9,1989 the Berlin Wall fell, yet this event caused creativity to rise. It shifted the balance of power throughout the globe to those who are democratic, consensual, …show more content…
free-market-oriented governance, and further from the authoritarian rule. Along with creativity rising, the rise of the web took place as well. This allowed communication and interaction with people to be more available. Shortly following, the development of work flow software gave the ability to create, demonstrate, and manage the data for companies. This flow was beneficial because it was less time consuming, more efficient, and more accessible to businesses. Uploading was defined as “one of the most revolutionary forms of collaboration in the flat world. More than ever, we can all now be producers, not just consumers” (p. 95). There are three different forms including Community-Developed Software Movement, Wikipedia, and Blogging/Podcasting. The difference between outsourcing and offshoring were clarified. Outsourcing is when a business takes a specific, limited function that it does in-house and joins another company to perform that exact function which then reintegrates the work into the overall operation; whereas offshoring uses their company and relocates one of its native country factories to another country for the functioning in another country. The more supply chains, the more flat the world is. The book used the example of WalMart and how it operates using low shipping costs and the ability to predict market demand. It benefits consumers by the low costs, but it hinders the ability for a small business to prosper with such a strong competition. On the other hand, insourcing is a practice where the company will take a consultant from within the business to train or perform tasks instead of contracting with another business. All together, the personal history of an individuals uploading, outsourcing, insourcing, supply-chaining, and offshoring define informing. It gave people the capability of doing things on their own. Lastly, steroids is the closing force that is believed to flatten the world. These steroids allowed the collaboration for all forms: outsourcing, offshoring, open-sourcing, supply-chaining, and in-forming – to join together. Friedman states: "As a result of these steroids, engines can now talk to computers, people can talk to people, computers can talk to computers, and people can talk to computers farther, faster, more cheaply, and more easily that ever before. And as that has happened, more people from more places have started asking one another the same two question: Can you hear me now? Can we work together now?" Free Trade in the United States As long as demand for goods and services increase, the more workers will be needed for the production of them.
Friedman uses the example of how services and goods have become progressively tradable and with that there is more of a need for outsourced, digitized, or automated jobs for the future. He explains that there is three categories of untouchable jobs in the new flat world; people who are “special or specialized, localized and anchored, or the old middle jobs.” Friedman underlines four skill sets and attitudes to survive employment and education in the flat world. These skill sets include the “ability to learn how to learn, the understanding that curiosity and passion, combined, are more important than intelligence, the ability to play well with others, and knowing the right brain stuff.” Due to the “mix of institutions, laws, and cultural norms that produce a level of trust, innovation, and collaboration that has enabled us to constantly renew our economy and raise our standard of living” Friedman explains his belief that the United States is able to accustom to the flat world. On the other hand, he believes that the United States aren’t seeing this advantage. In order to prove this point, Friedman reveals six dirty little secrets (The Numbers Gap, The Education Gap at the Top, The Ambition Gap, The Education Gap at the Bottom, The Funding Gap, The Infrastructure Gap) and tries to show account for what could occur if they don’t take advantage of …show more content…
this. Friedman states “leadership, muscles, good fat, social activism, and parenting” are the five action areas of compassionate flatism. Although he credits trade in the United States to be progressive in a flat world. The overall goal of compassionate flatism is to reshape welfare to provide the United States the direction, education, skills, and safety nets needed in order to strive when facing another individual in the flat world. Actions for Developing Countries “Introspection, commitment to more open and competitive markets, and the cultivation of infrastructure, education, and governance, as well as the creation of business-friendly environments” are ways Friedman advised developing countries to thrive. In order to truly comprehend a country’s economic performance, one must also consider its culture. How Flattening could Flounder Some of the reasons why flattening could go wrong can be answered for Freidman by asking two questions: “What are the biggest constituencies, forces, or problems impeding this flattening process, and how might we collaborate better to overcome them?” Friedman believes there will be an environmental crisis when those who live in the unflat world change to live in the flat world.
He encourages Americans to understand the negative effects they are causing. His conclusion is for the United States to join forces with China and India in decrease energy consumption. Along with negative effects of the flattening culture, Friedman explains that supply chains can also hinder the world. Because of the competitiveness and secure economy it allows more ability to terrorist activity. Friedman concludes that setting restriction of the amount of nuclear weapons is the best way we can control “suicide supply chains.” Todays Development of Creativity The day the Berlin Wall came down and 9/11 are examples Friedman uses to show the competing aspects of imagination in today’s world. Iris scans and x-ray machines will help defeat those who are trying to damage the flat world. Along with technology, we need to influence those around us who take advantage of flat world to oppress
others. There are three great eras of globalization; Globalization 1.0 from 1492-1800; Globalization 2.0 from 1800-2000, and Globalization 3.0 which he says is currently happening. The purpose of this book is to understand the development of the flat world. Reflection What really intrigued me was how accurate this book with the future. With being written ten years ago, they are talking about what is happening right now. One of the statistics in the book talked about how each person will have a blog. At first, I thought “well, they’re wrong” but then it occurred to me everyone truly does have their own blog. Now whether it is Facebook, Twitter, Instagram, Snapchat, blogs, and more, people are expression their opinions and what they did that day. They are able to write, post pictures, and live videos. We don’t have to sit and wait for a few days to take in our camera to a store like Wal-Mart to get them printed, but now we have the access to do it in seconds. It’s truly mind-blowing to me how convenient it is. Also, how with the development of technology and the web, it allows more independence on peoples style, but I do believe it hinders our in personal conversations. On the other hand, I like how it does allow us to keep in contact with those across the globe. Overall to me, it’s both scary and exciting to see what the future holds.
In his essay “Being Green at Ben and Jerry’s,” George F. Will lays out his argument against the environmentalists who hypocritically prevent coal mining and oil drilling in or near foreign soil. Despite the United States having enough oil and coal to be self dependent for years, tree huggers want to save our earth and import instead. However, letting places like Iraq do all of the resource extraction and the United State buying it from them is not much better. These environmentalists then call for a decrease in energy consumption, but no politician in his right mind would go against the Americans who love their big, gas-guzzling cars. Mostly, energy conservatives make policies that help them sleep well at night, rather than anything of actual
For the past century, the United States has been regarded as the greatest hegemonic power in the world. The U.S. played the most important role in the advancement of mankind from social, political, scientific, military, and economic standpoint. Unfortunately, today this is no longer true. Since the 1980’s the U.S. has been on a gradual decline. The introduction and implementation of trickle down economics, otherwise known as “Reaganomics,” has contributed greatly to the systemic dismantling of the socioeconomic structure that made America great.
“By making college unaffordable and student loans unbearable, we risk deterring our best and brightest from pursuing higher education and securing a good-paying job.” -Mark Pocan
As Americans we have to start to comprehend that the world around us is changing technologically, politically, and economically. In “The Last Superpower” an excerpt from the book The Post American World by Fareed Zakaria published in 2008. Zakaria emphasizes on these changes. Thomas Friedman the author of “The World is Flat” a piece from the book The World is Flat: A brief history of the twenty-first century published in 2005 also emphasizes on the same changes currently happening in the world. Zakaria and Friedman define these changes as globalization. The obvious common ground shared by both authors is their representation of globalization and the effects that it has and will continue to have on modern life. In contrast to sharing the same main topic both authors take a drastically different approach on how the relay their information to the audience. The differences displayed are mainly due to their personal and educational backgrounds, definitions of globalization as well as the individual writing styles of each author.
In the fall of 1989, people all around the world were watching unbelievable scenes on their televisions. Thousands of people in eastern Europe were meeting in the streets and squares and demanding the end of the communist rule. For the first time in history, opposition to communism was publically voiced. Barbed wire border fences in Hungary were being torn down. East Germans were fleeing to the West. Overnight the Berlin wall collapsed. The start of these historical events was the Polish Revolution of 1989.
In conclusion Berlin Wall was an important milestone in the growth of the Cold War. It was the expansion that represented the thinking of a determined Communist system. Western Capitalism, which was more powerful, eventually defeated the system. The massive wall that did so much harm to a country was finally destroyed, and the people of Germany could now live the way they all wanted to live. They could live the life of freedom. Since the fall of the Berlin Wall East Germany has went through a lot of changes, and it still is not easy for all of the people in East Germany. But no matter how hard it is for the people of East Germany now, it is better than being alone and separated from their families, friends and rest of Europe.
The fall of the Berlin Wall in 1989 precipitated the Reunification of Germany in 1990. Negotiations and talks between East German’s Lothar de Maiziere and West German’s Helmut Kohl and the four occupying powers of United States, United Kingdom, France, and Soviet Union resulted in the Unification Treaty or the “Two plus Four Treaty” recognizing the sovereignty of the newly unified German state. The five states of German Democratic Republic or East Germany united with Federal Republic of Germany or West Germany and Berlin became a unified city on October 3, 1990 marking the die wende or Turning Point. “By early 1991, however, not much more than a year after the barricade surrounding the Brandenburg Gate was actually removed, most Germans, East and West, were asking themselves whether the Wall’s absence was, by itself sufficient to bring the nation together again” (McAdams 199).” Zealous attempts to restructure East Germany’s economy after reunification in 1990 led to massive debt and high taxation, sparking disillusionment and frustration among German citizens, which resulted in a divided and unequal economy.
Middle class Americans represent more than half of the United States’ population. They are the backbone of U.S. economics, and have been since the very beginning of the country’s history. However, an unstable job market, created by outsourcing, combined with a minimum wage which has not been raised since 1989, is gradually shrinking this economic group. To avoid the extinction of this critical class, the next president of the United States will have to go to extraordinary measures. Without major reformation, the middle class will continue to be absorbed by the lower class, ultimately resulting in the complete loss of one of America’s most important socio-economic bodies.
The phrase: "the world is flat" can be interpreted in many ways. Basically what Friedman means by "flat" is "linked." The falling of trade and political barriers and technical advances have made it possible to do business, instantaneously with billions of other people around the world. It has allowed for parts of the world, which had previously been cut off, like China and India, to successfully compete in the world market. Thus, the playing field is being leveled, and no one nation has an advantage. Friedman could also refer to a "flat world" in a metaphorical sense. In a spherical earth you cannot see around the world and cannot recognize the opportunities far from where you live. If the world were flat you could see it all. There would be no barriers to get in your way. This is the equivalent to a smaller globe which allows one to reach far away opportunities.
The American values system have also been on the decline, from corporate greed to the entitlement generation. When corporate executive officers of corporate America make three hundred and eighty times more than the ordinary worker today, and the top wage earners on the social stratosphere pay fewer taxes than the average worker. They have what it seems a cultural capital and advantage to have a higher status than most of the American 's. It is hard to imagine that the upward social mobility of today is attainable. The nation 's social mobility is dependent on the overall structure of social statuses and occupations. United Nations health economist and author Dr. Howard Friedman stated in a news interview with CNN that, "The land of opportunity is not what it used to be. In a time where safety, health, and democracy are on the decline. America now has the highest pre- and post- income adjustment of all countries." The best overall income equality were found in Japan, Spain, Korea, and Italy, although America does still excel in areas of education, having some of the best colleges in the world, as well as Hospitals, technology, and entrepreneurship. Having the money to attend some of these prestigious
Friedman also talks about the ten flatteners such as workflow software, open sourcing, outsourcing, offshoring and supply chaining. Friedman (2005, p.35) claims that “these flatteners created the platform for collaboration that flattened the world even more”. This global collaboration boasts the increase in the levels of internationalization in the world today. Meaning more firms are internationalizing and doing business abroad. However, Ghemawat (2007, p.56-57) disputes this with his “10 Percent Presumption”. Ghemawat(2007, p.56-57) maintains that “most types of economic activity that could be conducted either within or across borders turn out to still be quite domestically concentrated”. The total amount of capital being invested in foreign direct investment (FDI) around the world has been less that 10 percent for the last three years for which data is available (2003-2005) (Ghemawat, 2007). This means that the sliding majority of investments are domestically based.
Constant change and a flat, global competitive market landscape were described by Thomas Friedman, author of The World is Flat, as triple convergence and was a result of the ten flatteners. Friedman also stated that in “Globalization 1.0, countries had to think globally. In Globalization 2.0, companies had to think globally to thrive, or at least survive. In Globalization 3.0, individuals have to think globally to thrive, or at least survive.” (Friedman, 2007) The concept of needing individuals to think globally and thrive in the market led Friedman to travel and report on various educational cultures across the world. Friedman was determined to find “the right stuff” to make the youth in future generations competitive globally.
The collapse of the Berlin Wall changed Western Europe as we know it today. The Iron Curtain, which had split Europe, had ascended and the once divided Germans were reunited under one common nation. The causal factors which resulted in the fall of the Berlin Wall were internal — communism imploded upon itself—. Gorbachev attempted to reform communism through Glasnost and Perestroika, which were supposed to incorporate economic reforms and transparency, however, history illustrates that increased liberty is incompatible with communism. Dr. Schmidtke argued that structural deficiencies led along with poor economic growth which led to the collapse of communism in Europe, and consequently the collapse of the Berlin Wall.
The book, The World is Flat, by Thomas Friedman draws attention to some very good points concerning globalization and the world economy today. Friedman emphasizes the status of America today in relation to the other countries of the world. As I looked at the things in which he warned about or highlighted, I realized the importance of this issue. He talks about a few aspects in which need to be kept competitive in order for America to retain their current standing in the world market.
...in the new “flat world” individuals need to figure out how to become “untouchable.” He explains that “untouchables are people whose jobs cannot be outsourced, digitized, or automated” (184). He explains that in a “flat world” there is no longer a job based solely on geographic, but rather in most cases an available job “will go to the best, smartest, most productive or cheapest worker-wherever he or she resides” (183). He goes on to show that companies and individuals have to look at the global picture today in order to succeed (183).