Globalization: My Q’s How has communication technology allowed globalization to occur? What is a transnational business? How has globalization affected America’s economy?

Globalization Globalization is the development of a globalized society where people from different societies and cultures around the world share ideas and usually rely on each other economically. America has become increasingly involved in globalization since the early 1990s. As a result we depend on foreign countries and peoples more than ever before.

Global Communication One of the major reasons globalization is possible and successful is because of the development of global communication. Computers Internet Cell Phones Skype All of these new forms of communication easily allow people around the world to communicate with others across the globe. But what happens when only certain societies have access to these forms of communication? They have an unfair advantage in the global workplace!

Transnational businesses A transnational business is a business that operates in more than one country. Many large American businesses have expanded to other countries in the past few decades. Can you name some of these businesses? For instance, many car companies have expanded overseas because it is cheaper to produce certain materials in other regions of the world. Therefore, a fender might be made in India and then sent to Toledo to place on a Jeep vehicle on an assembly line.

Overseas Competition Overseas competition has challenged American producers and local communities. One of the underlying issues of this is the trade deficit facing America. A trade deficit occurs when a country exports less than what they import in. Currently America is importing more goods and services from other countries than what they are producing for other countries. When a trade deficit occurs, it usually results in the closing of industrial plants and a decrease in manufacturing jobs. This is exactly what is occurring in America today.

Shift from Manufacturing to Service Jobs Because the cost to employ workers is cheaper overseas, many manufacturing jobs have left America for foreign markets. In its place, America’s economy has become more service-oriented. Service occupations like computer programmers, nurses, and financial advisers have increased dramatically in the past few decades. Also, lower-paying service jobs in the fast food and retail industries have grown.