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Analyzing the Impact of Outsourcing on Global Stratification- Benefits and Implications for the U.S. and Peripheral Countries

Analyzing the Impact of Outsourcing on Global Stratification- Benefits and Implications for the U.S. and Peripheral Countries

The world systems theory suggests that wealthy nations reap a lot of benefits from other low-status nations. Furthermore, the model also suggests that minimal benefits are derived from low-status nations. The issue of job outsourcing to less-developed nations with accessibility to cheap labor has been a contentious issue that has dominated most of the political discourses. Those opposing the issue have widely criticized it as a conduit for leaving Americans and other citizens of the First World unemployed (Correnti, 2017). However, I believe that the overarching goal of any business is profitability and survivability. Consequently, I find it logical for brands such as Apple Inc. to outsource the production of their products to nations, such as China, that have put in place provisions that promote the mass production of their products at relatively affordable prices.

One way that outsourcing aids Americans is that it enables U.S. companies to become more competitive within the global marketplace. Such competition enables them to sell to foreign markets, and therefore, maintain labor costs at relatively low levels in emerging markets characterized by lower standards of living. Subsequently, this significantly reduces the prices of goods that are shipped back to the United States (Correnti, 2017).

According to Amadeo (2022), the global economic system is stratified into a hierarchy of three types of nations: core, semi-peripheral, and peripheral. Core countries (such as the U.S., Germany, and Japan) are dominant, capitalist nations characterized by significant industrialization levels. This means that they tend to have control of economic and trade agreements. On the other hand, semi-peripheral nations (such as South Korea, Brazil, and India) tend to be less developed than core nations but more developed than their peripheral counterparts, and as such, they usually exploit them. Ultimately, Peripheral nations (such as most African states and low-income nations of South America) rely heavily on core nations for capital and tend to be less urbanized and industrialized (Amadeo, 2022).

References

Amadeo, K. (2022). What You Should Know About Outsourcing Jobs. The Balance. https://www.thebalance.com/how-outsourcing-jobs-affects-the-u-s-economy-3306279#:~:text=Job%20outsourcing%20helps%20U.S.%20companies

Correnti, M. (2017). Outsourcing Overseas and its Effect on the U.S. Economy. Ncbfaa.org. https://www.ncbfaa.org/Scripts/4Disapi.dll/4DCGI/cms/review.html?Action=CMS_Document&DocID=14050&MenuKey=pubs

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Question 


Overview: In this discussion, you will apply global theories of stratification to analyze outsourcing in the context of global stratification.

Initial post: In your initial post, address the following questions:

Analyzing the Impact of Outsourcing on Global Stratification- Benefits and Implications for the U.S. and Peripheral Countries

What do you think about companies in the U. S. outsourcing jobs to peripheral and semi-peripheral countries?
Do you think outsourcing benefits the U. S. and the citizens of America?
Explain in one to two paragraphs the dynamics in the relationship between the core, peripheral, and semi-peripheral countries that are involved in outsourcing.

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