Target a multinational corporation/international company and the practice of \"o
ID: 1227928 • Letter: T
Question
Target a multinational corporation/international company and the practice of "outsourcing" to third world countries. Some examples of MNCs (multinational corporations) would be Nike, General Motors, Ford, Qwest, and Fender Music.
Research its effects on local culture. Write a summary and analysis of 500-750 words and include the following:
1.How does global stratification impact local culture? What are the positive and negative effects?
2.How does global stratification impact the United States? What are the positive and negative effects?
3.Who is the biggest "winner" in this situation? Explain.
Explanation / Answer
A multinational corporation like Nike outsources a lot of its work from third world countries like China, Indonesia where labour costs are low and also the tax rates are also law. All the Multinational Companies want to reduce the productions costs as much as they can. Somtimes, they also exploit laborers in these countries in order to reduce the costs further. The global stratification has both its positive and negative effects. The positive effects are that it helps US cultural and social values in other countries. Also, it helps the MNCs to outsources unskilled workto these countries and specialise in highly specialised tasks themselves.
But as they there is nothing like a free luncheon, global strafication has its own costs. First, it is taking jobs from US citizens to other countries. Also, the overall wealth of these poor countries do not increase through these outsourcing processes. They were and they remain third world.
The major winner in this whole process is the big corporations who earn huge profits. They have the ability to move the capital from around the world. But , the poor workers are just the puppets of these companies.
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