Exports and overseas operations are highly beneficial for a company. US firms increase their profitability and net worth by expanding into potential markets globally. This happens either through a fully direct investment or through partnerships and mergers. Through this market expansion, the US firms earn more profits and market share. Increased profitability of the company will boost the investment climate in the market. An increased investment climate will in turn help to boost the economy. This is how the whole cycle works.
This scenario can be better explained with the help of companies from various industrial sectors. To begin with, let us take the case of automobile industry which is one of the major contributors to the nation’s economy. Ford Motors, one of the largest US auto manufacturers has recently entered into a joint venture with OAO Sollers of Russia to manufacture and distribute Ford Cars in Russia. “The partnership with Sollers also will include engine production and stamping and involve establishing research and development activities, Ford said in a statement.” (Higgins & Ebhardt, 2011) This arrangement will help to increase the market presence of Ford which has successfully come out from a crisis recently. This increase of market share will kick start the cycle which has been mentioned earlier in the essay. Now let us see the case in a different angle. Companies also increase the profits through cost reduction. Employee compensation forms one of the major components of the total cost of production. US companies have been making huge cost savings by using cheap labor from outside the country. Most of the companies outsource its back end operations to countries like India and China where the job is done at half the cost incurred in US. Most US IT firms have their full fledged offices in these countries. Outsourcing helps the US firms to increase profits through cost savings. This has helped the companies to increase the ...
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(Globalization and the New American Economy Essay)
“Globalization and the New American Economy Essay”, n.d. https://studentshare.net/marketing/451822-globalization-and-the-new-american-economy.
Globalization, Its Significance to Challenges of Development and Key Debates. Globalization and related development were considered as the wave of the future when they first appeared to unite countries into one global economy for the mutual benefits, which presumed global integration and interdependence in the technological, economic, social, cultural, ecological and political spheres.
Four to five billion people joined the global market economy when the Soviet Union fell apart, and China merged with the global trading system (Eckes, 2011, p.viii). This turn of events in history led to the epoch of deregulated capitalism spearheaded by one powerful nation, and that is the United States (Eckes, 2011, p.viii).
The following paper will consider the working of the American Corporations with the other international organizations in an effort to boost the economy. Initiatives from the American Companies to boost the economy The strength of the U.S. multinational companies is driven by international engagement.
New Zealand is an island nation in the southern Hemisphere. It is an isolated island with many islands around; it has unique plants and animals (Britton 4). The Polynesians were the first people to settle in New Zealand. The New Zealand people are the descendants of European immigrants and native people of Maori.
The global market change has had a variety of effects on various areas such as the economic and trade activities between countries, as well as on the labour markets. The labour market over the last few years has changed dramatically, especially in developed countries.
Globalization is a process in which the people of the world are united by a single society and transforming certain things into global ones. Economic, technological, sociocultural and political forces have now been united into a single society. It is also used to refer to the integration of national economies with the international economy by trade and foreign investment.
The author of the essay comments on the advantages and disadvantages of globalization. Namely, it is stated that the pro-globalization forces view the structural arrangement that corresponds to power distribution in the three concentric circles. According to Emanuel Wallerstein, these power circles are comprised of core, semi-periphery, and periphery.
The coming generation may be having a more advanced economy with a different culture as compared to the current generations. We should not forget that globalization is also reversible. Things like world war if worse can move the country back to the scratch.
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