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  • Essay / An American Economy - 921

    An American EconomyGlobalization is a very pressing issue in American culture today. In any economy, globalization will cause many problems while solving many others. This is true because many factors are involved in globalization, one of the most important being the outsourcing of jobs. Although, at first glance and from what the media reports, outsourcing work is definitely not healthy for the economy. However, upon closer inspection, the opposite might be true. Outsourcing jobs, although initially burdensome on the workforce, helps create a strong economy. Outsourcing jobs creates an initial loss of employment in the field concerned. This happens because in a globalized economy, the idea is to move one's workforce to the most efficient location. Of the relocations that take place in the United States, less than 30% have even been sent overseas (Reed Business Information, 7), meaning that jobs are moving from one American city to another. It's just smart business because often, the company says, other areas of the country are less expensive than others. However, it is often the case that labor is not displaced but simply replaced by similar but cheaper labor available in a low-wage country. The old workforce is now unemployed and must relocate or retrain. This concept is often considered heartless because people are only interested in immediate negative effects and not possible positive outcomes. Take for example IBM. In January, they announced...