Political Science Essay Paper on Why U.S Companies aren’t so American Anymore

Newman, Rick. Why U.S Companies arent so American anymore. 30 6 2011. 25 6 2015 http://money.usnews.com/money/blogs/flowchart/2011/06/30/why-us-companies-arent-so-american-anymore.

Summary

    The article Why U.S companies aren’t so American anymore, by Rick Newman, highlights the effects of globalization on American companies, the article contends that the word globalization has changed to a dirty word in the American context (Newman par 1). This is because, many Americans have linked it with the jobs being taken to other countries, decreasing wages plus living standards in America and the gradual growth of China as  an influential power. The article highlights the negative sides of globalization, for example, many products in a number of American stores like Wal-Mart have remained low due to the available cheap imports from Asian countries and other areas where low cost manufacturing takes place (Newman par 2).

Globalization has increased growth in many companies and for the people who work in these companies. Since globalization is characterized by foreign exposure, many U.S based companies are able to capitalize on quick growth in upcoming markets like those in China and India. Emerging markets enable companies to earn great profits than if they are wholly dependent on the unstable U.S economy (Newman par 3).

Article review

The relevance of the above article cannot be underestimated; this is because it clearly demystifies the impacts that globalization has, not only on the U.S economy but on different countries around the world on a wider scale. In the discussion, the author has paid immense attention to the issue of globalization in terms of outsourcing by various companies in America, the major concern is that the adoption of a free trade environment has contributed to job drain from the American economy; the jobs end up in countries like China, India and places where workers do not need higher salaries. From the article it is evident that in the extreme many people would love to see an end to this kind of activity through restraints on the trade for the purpose of protecting the jobs (Harris 13). However, this would halt the globalization trend and many multinationals that benefit from this would not be able to reap the benefits of taking advantage of a global economy.

The article is insightful and has provided useful information concerning the determination of whether globalization is a threat or an opportunity to the economies of the world. By focusing on the United States; one of the biggest economies in the world, the author has enabled us to have a credible point from which we can base our analysis on (Harris 16). It is evident that though globalization may make people lose their jobs to the outside workers, it is possible to gain jobs and boost the economic activity. Embracing open trade will significantly help the foreign economies to grow (Harris 18). When the income grows in other countries, the demand for goods and services grow, increase in foreign demand is a good opportunity for the United States firms to compete in the provision of products. Globalization is significant and can help in increasing productivity growth in the United States and in different countries across the world (Harris 24). Instead of worrying about the number of jobs that are taken to other countries, policies should be created to assist workers get through during the hard times and assist them to become more flexible to help them adapt to changes.

References

Harris, Jerry Robert. “Globalization,Technology and Transnational capitalist clas.” Foresight (2015): 2-4.

Newman, Rick. Why U.S Companies arent so American anymore. 30 6 2011. 25 6 2015 <http://money.usnews.com/money/blogs/flowchart/2011/06/30/why-us-companies-arent-so-american-anymore>.

Newman, Rick. Why U.S Companies arent so American anymore. 30 6 2011. 25 6 2015 http://money.usnews.com/money/blogs/flowchart/2011/06/30/why-us-companies-arent-so-american-anymore