Globalization is the process of integrating policies, cultures, societies, and regional financial wealth through trade and the exchange of ideas throughout the world. Every company in the world does business internationally through globalization. It allows small nations to get their goods out into the global economy through exportation. The world's largest revenue producing companies are multinational corporations, that are head quartered in one country and do business worldwide.
Globalization makes companies become more competitive through trade and offshoring. In an effort to sustain and increase revenue many multinational corporations are outsourcing. They are contracting a cheaper work force in other countries. For instance, the Sprint Nextel corporation outsources customer service calls to other countries. This is a cost cutting strategy that brings training and jobs to economies all over the world. Smaller economies get the infrastructure to grow and join the global economy. However, the workers of these smaller nations aren’t always treated fairly and often work long grueling hours to support their families. The salaries they take home are minuscule when compared to a worker doing the same job in a wealthier nation. For example, a Chinese factory worker making TV’s might take home about $3 a day, while their U.S counterparts make about $120 per day. In many countries a minimum wage doesn’t exist and multinational corporations can get more productivity and pay less in wages. Here is a brief video to further explain.
Corporations have exploited certain principles of globalization to increase profits, while disregarding cultures and societies for the cheap labor that runs rampant. It appears that the multinational corporations are the only beneficiaries of globalization. Large and small nations can find common, and all the principles of globalization can be implemented. Both sides must be willing to act and only social and cultural actions will tell if this will happen.
