Impact of Globalization on the World Economies Free Essay Example, 1250 words

There are very minute international financial activities in the world which will not get affected by the numerous changes in the U. S. economy. Hence, global outsourcing is no exception to this phenomenon. The present developments in the U. S. economy will definitely have great impacts on the outsourcing business. But there are two primary developments in the world economy. One of the major developments is actually in progress in the U. S. and is related to the unemployment problem. Since more and more people are looking towards the new government of Obama to restrict the outsourcing effect. But it must be remembered that the loss of a job is not primarily based on the outsourcing effect, rather it is dependent on attrition rate and job changes. Hence, the fact that the developed countries are losing jobs due to outsourcing to developing nations like China, India, and the Philippines is not exactly true. Another concurrent increase is the diminishing revenue margins of the compani es, which is again putting a lot of pressure on the management to find means to cut the costs and preserve the profit. We will write a custom essay sample on Impact of Globalization on the World Economies or any topic specifically for you Only $17.96 $11.86/page