Globalization is the distribution of industrial and service activities across an increasing number of nations across the globe. The world’s economies have become deeply integrated and interdependent on each other. As the article Global Trade, Identify the Losers from The Economist mentions, American companies such as Apple create jobs in the United States, but have also created jobs elsewhere. Job distribution is increasing overseas as there is a diverse pool of applicants with increased productivity, and many times at a fraction of the cost of American workers. Reduced barriers of trade have created many business opportunities for companies like Apple to take advantage of the knowledge and resources not only in the …show more content…
The article is highlighting that although the United States has many successful companies, a component of their success might be the utilization of resources outside the United States to produce at the lowest cost, a benefit that has been provided by the globalization of world’s economies. Along with the workforce located in the United States, Apple may utilize a labor force in India, purchase raw materials from Japan, manufacture products in Mexico, and sell the final product in the United States and other countries across the globe. Globalizaiton has allowed for the various aspects of the supply chain to come from different economies, as each country has utilized its resources most efficiently. Apple has the luxury of choosing between a labor force both domestically and internally, a choice that may not have been possible before the world’s economies were globalized. Companies can reap the benefits of international trade with less barriers allowing for more efficient business processes.
The article also raises concern that with globalization, American workers are at a disadvantage due to their cost compared to productivity or benefit. If labor is cheaper elsewhere and Apple’s motive is profit,