Multifunctional Corporation Outsourcing Essay Example

that the western ideals are imposed on the developing countries through media thus promoting cultural colonialism.

Globalization has positive impacts to the local cultures. It increases the quality of goods consumed due to increased competition and generates employment for them thus improving their living standards (Buckley, & Ghauri, 2004). This has also resulted to an increased investment and capital flows to the host nation.
Globalization has increased the technical know-how and spread of knowledge to the host nation as a result of increased innovations. It has also promoted the spread culture due to mingling of the western countries and developing countries thus increasing civilization. Globalization has also played a significant role in the extension of education due to increased mobilization of people in and out of the country

Impact of global stratification in United States

Globalization has positive impacts in the United States.It has resulted in increased income/gross domestic product to the USA this is a result of multifunctional companies producing at a reduced cost.
It has led to an increase in quality of goods and services to meet consumers demand by both parties since they are facing completion from the local industries. It increases spread of education and culture on the people of the US in the host nation.

Global stratification has resulted to improved speed to the market and time to

focus on the core business and innovation. Moreover, it has decreased environmental degradation since they are outsourcing in the developing countries and lastly, has increased the flow of currency and investment. (Narula & Dunning 2000).

Global stratification has negative impacts. USA has been importing cheaper products as a result of the cheap labor being utilized. The low prices of goods incurred have a major drawback to the GDP being gained by the parent nation. It has also led to unemployment in USA since there is loss of employment positions granted to foreign workers who are willing to work in adverse conditions. All this has resulted to poor trade arrears.

Biggest winner in the situation

The biggest winner in the situation is the Multifunctional organizations. This is because these organizations have great influence on the third world countries .They have also opened up new markets for their products hence US can sell their commodities worldwide thus improving their economy. They have also used cheap labor and resources to produce their goods in a bid to reduce the cost of production (Narula & Dunning 2000).

Conclusion

In conclusion, many multinational companies are using the outsourcing strategy to benefit the most and least benefiting the local cultures.

References

1. Buckley, P. J., & Ghauri, P. N. (2004). Globalization, economic geography and the strategy of multinational enterprises. Journal of International Business Studies, 35(2), 81-98.
2. Prasad, E., Rogoff, K., Wei, S. J., & Kose, M. A. (2005). Effects of financial globalization on developing countries: some empirical evidence. In India’s and China’s Recent Experience with Reform and Growth (pp. 201-228). Palgrave Macmillan UK.
3. Narula, R., & Dunning, J. H. (2000). Industrial development, globalization, and multinational enterprises: new realities
   

for developing countries. Oxford development studies, 28(2), 141-167.