Globalization is an extremely controversial albeit complex issue. It is defined as a process of increased integration and co-operation of different economies. It is a process where national economies become integrated and inter-related.
The tragedy is that the working class in the US believe that they are being taken for a ride because of outsourcing viz., globalization. The positive side is that there are no more domestic monopolies as firms face greater competition from foreign companies due to globalization. There is also an increase in the level of investments, which play a large role in the economies of developing nations.
The average American believes that companies hire cheap skilled labor and engineers from China and India for a fraction of the cost in comparison with what they may have to pay an equivalent skilled US engineer. Although this may appear that the Government is being unfair to the US workforce, many fail to understand that this is because of the prevalent market forces. It may also appear tragic that the Indian or Chinese skilled engineer is ready to work for “peanuts” in comparison to what their equivalent American counterpart makes. The time has come to face facts in connection with a global wage amount.
While market forces decide wage amounts, viz., globalization, there unfortunately is no method that will reverse the basic rules of simple economics. What will eventually happen is the formation of equalization of global wages. While the wages in richer countries will be reduced, the wages in poorer countries will be increased until there is an equalization in wages. Although, this process may take some time, it is a process that is inevitable and will leverage itself over time.
I personally have no complaints regarding outsourcing, as I am being paid close to three to four times the amount that I would receive if I wrote the same article for an Indian company. However, I do feel guilty at times when my American counterparts blame the Indian writers for reducing the market prices. While I am for a global equalization in salary or wages, there would be a cross-section of my counterparts from richer countries who would have to compromise.
Globalization is certainly hurting many families in the United States, but what really hurts people are that they believe that their government is in support of it as they tend to profit from it. Whatever said, globalization is a process that cannot be changed and has to be accepted. I guess that this might appear as a deathblow to nationalism, but these are the facts.
This is a guest post by Lance Goodman of www.dishtvoffer.com, a site that offers savings and current information on dish network.