Black Book Report

This essay has a total of 1190 words and 5 pages.

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For decades, American citizens have been complaining about how outsourcing has ruined
their lives and that it is only going to harm America and its economy. Unfortunately, jobs
are going to be lost and the unemployment rate may rise due to globalization. However, the
benefits of globalization are infinite. People in other parts of the world will achieve a
greater life than they ever thought possible due to the factories built in their
countries. Due to the poverty in third world countries, these factories will provide a
great source of income for the citizens of third world countries. People in America will
benefit from the stable economy; prices of America's goods will stay relatively the same.
Despite the misinformed Americans opinions of outsourcing, the benefits are crucial in
developing America's economy

Businesses should outsource if it benefits their company. Big corporations are not
responsible for the well being of the citizens of America. If outsourcing is going to
benefit companies then why shouldn't they be shipping their jobs to third world countries?
Their goals are to make as much money as they can regardless of the well being of others.
This is the goal of the big corporation. On the other hand, thinking about the well being
of the American people, many Americans say that the corporations are being selfish and owe
something to the citizens. Despite what these people say, the corporations owe nothing to
the people. Business are always competing with each other, and if one business does
outsourcing then the other businesses have to follow the same path because they will not
be able to compete with the outsourcing business.

Outsourcing is not a matter of morality but a matter of survival.
All over the media, people are saying that outsourcing is horrible for America. Unaware
individuals believe that globalization undermines America's economy and only helps big
businesses. However, what they don't understand is that it stabilizes America's economy
and prevents inflation. For example, the New England Economic Review states that
"estimates of the Phillips curve suggest that the low level of unemployment over the last
few years should have produced a fairly significant increase in the rate of inflation, yet
inflation has continued to fall…Perhaps the most widely cited explanation for the
surprisingly good inflation performance of late concerns the increasing sensitivity of the
U.S. economy to foreign economic conditions."
(http://www.bos.frb.org/economic/neer/neer1998/neer498b.htm) This statement by the New
England Economic Review not only tells us that globalization has affected inflation in a
positive light but also that globalization is essential to the ongoing decline of
inflation. Moreover, globalization is necessary to the ongoing success of the U.S.
economy. On a wider scale, in an article about inflation, Kenneth Rogoff, the Director of
the Center for International Development at Harvard University, states that
"globalization…has played a strong supporting role in the past decade's disinflation."
(http://www.imf.org/external/pubs/ft/fandd/2003/12/pdf/straight.pdf) In fact Rogoff shows
that from 1981 to 2003, the inflation for developing countries has dropped from 12 to 4
percent while the inflation for developed countries has dropped from 11 to a low 2
percent. These statistics are staggering and simply proves one of the overwhelming
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