NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Recent Trends in Finance: Globalization and Financial Services (Outsourcing) Today the development of the global economy relies very much on the principles of fair competition. There is virtually no presence of the corrupted authorities lobbing the financial projects of own benefit, no special conditions for major industries. In this situation it is a must of the company to stay on the competitive edge, and at the same time remain legal. The competition today is mostly concerned with prices and services. Since the supply of the services is almost unlimited with many slight differentiations, the only way to compete is to reduce the prices for goods or services, and make them look the same as competitors but simply less expensive. Price reduction can only come from reduction of the costs.
This is what most of the companies do today. One of the best ways for cost reduction is optimizing the cost-revenue structure of the enterprises activity. The deal is: to buy the input where it costs less, and to sell the output derived where the price for it is higher. There are two options of this approach that will be discussed in this paper.
They are: Globalization, and Purchase of Financial Services (in our case outsourcing of some activity). That globalization evolved t be a key fact fr the success f many companies. Many scholars view globalization as a positive event, but there are als numerous scholars wh perceive it as negative. The globalization all t use the benefits f free trade t its full extend. A mre efficient utilization f the resources can lead t reduced prices fr consumers, and at the same time supply a bigger variety f gds. There are sme details abut globalization that we need t consider first f all.
n January 13, 1998, Stephen Guy, press f ecnmic's at Swarthmre College, led the sixteenth seminar in AEIs series, Understanding Economic Inequality. His presentations such t dispel fallacies but widespread views concerning the effects f competition frm lw-wage countries in international trade, including the view that such competition has significantly increased wages inequality in the U. S. The argument that lw foreign wages has provided an unfair competitive advantage has been widely believed in the United States fr at least 150 years. n the question f whether competition frm lw-wage countries is the cause f the widening income gap in the U. S. , many agree that wage inequality reflects greater demand fr skilled last, as evidenced by the growing wage premium earned by college students.
There are tw possible causes f the increasing demand fr mre sophisticated skills: international trade and skill-biased technical change. International trade des nt increase the demand fr relatively higher skilled last, as would be expected frm the the f comparative advantage. But many studies f this issue conclude that trade with lw-wage countries has played, at mst, a secondary rle in income inequality. The studies shw that technical change is the main read fr the shift in demand fr last. Trade with lw-wage countries is very small relative t the U. S.
GDP. Globalization with these countries des nt d what mst ecn mist report (Last Cst's and International Trade). In his article, Globalization: Benefits and Responsibilities, U. S. Ambassador Richard Hecklinger reports his views n globalization. In his introduction, he states that globalization is a phenomenon that touches every ne f us.
This statement is true because free trade causes many things t be better fr consumers. Later in the introduction, Hecklinger says that the entire society [has] a responsibility t wrk together t take full advantage f globalization and t minimize any negative impact[s] it might have. In the first sectin - Markets, Party, and Globalization - he starts ff by saying that pen markets and rules-based trade are the best means we know f t lift the standard f living. He pints ut that international trade and investment are essential t the property and well being f ur companies and eventually citizens.
He she a statistic f and developing nation that she that frm 1970 - 1990, economic growth rates were 4. 5 % fr the wh were peter t free trade, and less than ne percent fr the wh backed trade and investment. The send pint he makes is that economic growth is the best and probably the nly cure fr party. In studies dne, ut f 125 countries with relatively case relationships in verbal income, 108 f them had increased income and there pr. The global economy fees countries markets fr the products, less prices and expands click fr consumers and domestic industries alike, creates jbs, and ultimately reduces party despite disruption t sme secure. f curse, pen markets and competition will always all sme people t become rich... [, but] disparity in income levels is less important than whether people are moving ut f party, and whether they are given the ppr tunity t benefit frm economic growth. The third pint he makes is that globalization des nt mean the end f local business, ethnic identities, r national culture.
In fact, revolutionary changes in transportation and communications b literate many barriers t global market entry, creating countless pprtunities fr micr-entrepreneurs. These three pints are the main reasn's Mr. Hecklinger believes globalization is a vital part f international ecnmic's (Globalization: Benefits and Responsibilities). In a Pew Research Center nationwide survey in April, 43 % f the respondents said that the future f global ecnmic's would help the average American, while 52 % said it would hurt. The survey shw's that as the earnings f the families decreased, s did their belief that globalization would be beneficial. Anther survey she that, n the average, mst American families are better financially nw than they were a few years ag.
But nce again, they fund that financial satisfaction is als decreasing as the family's income levels decrease. Wages als continue t be a source f concern. nly 39 % f Americans say they earn enough my t lead the life they want. With the expansion f globalization, 67 % f Americans were that gd jbs will begin t me verses, and that they will be left with jbs that d nt pay enough.
Although mst Americans for free trade, mst als criticize the specific policies and agreements. Mr. Kit, head f the research center, states that the dissatisfaction showing in Seattle is less important than a mre widespread public ptimism abut future economic gains. This seems t be ne f the main benefits f free trade (Americans Hld Varying Views Abut Benefits f Globalization). If we are t lk at the international trade we will notice tw f its effects. The first effect fund is the static effect.
In earlier studies dne, imposing tariff[s] results in sme efficiency less t a cuntry's economy. Economic integration has the paste result - by reading tariffs... this lss becme's a gain. The real f a tariff reduces the price back t the world price, which all fr cheaper prices fr consumers.
Reading a tariff all bth the production distortion lss and the consumption distortion lss t be reserved t the economy. These tw areas nw become gains. Economic integration can als lead t trade diversion. This is nt in the best interest f all member countries. Trade diversion course when member countries are nt the mst efficient producers f a gd. Member countries will still trade with the countries feeling the best price, but the economic back can district these prices.
By buying gds frm member countries with a lower price, the importing country might get a less efficient product. The country with the higher price might price the gds at a better quality, but ther's will nt buy frm them because f their price. There is als a dynamic effect f International trade. In this effect, integration leads t a larger market within the back, allowing countries t take advantage f enemies f scale t reduce prices. Integration als all fr specialization by member countries.
Rather than having all member countries producing a large variety f gds, they can agree t allocate production f certain gds t certain member countries. This, again, means they can take advantage f enemies f scale. All f this leads t the question f whether economic integration is best type f free trade. Although conventional free trade gives maximum benefits t the entire world, economic integration inhibits this because it combines countries int grup's with their wn special privileges (Economic Integration - Benefits and Cst's). Nw lets analyze sme statistics n globalization. First, the create power shw's that 2 / 3 f international trade is accepted fr by just 500 crpratins.
It shw's that transnational crpratins have reached the greatest cntrl ver the press f globalization. T explain, the turner f the 200 leading crpratins has increased frm 3, 000 t 7, 000 billion since 1982. These crpratins are dominating international trade. At the current men international trade is expanding faster than the wrld's economy. Trade is argued t be ne f the main engines in economic growth. Even with this, developing countries are still having table competing with ther nations.
Even though these developing countries can complete with the larger nes, globalization is still making it better fr them (Statistic Globalization). Globalization and the Pr Countries: Viewpoint f the IMF brings up many mre ideas abut globalization. In studying the effects f international trade, the IMF fund ut that even though living standards and the quality f life [is] steadily n the rise in industrial countries... it is als stagnating in a number f the press countries, in particular in Africa.
Sme f these African countries are even regressing. Als the income gap between the rich and pr countries has never been s high. There are three reasn's the IMF sees that might be the read fr this currency. First, the absence f associated measures essential t the viability f public and private investment projects is ne read. The send read is that the tendency f dnr countries t for projects mre in keeping with their wn express' interests than with the needs f the countries receiving aid. The last read is the propensity f recipient country es t give precedence t military spending r wasteful projects and, all t free as well, shortcomings in public administration r corruption.
The press countries are frequently left behind by globalization. These countries receive little investment r private capital. With this, they are unable t remain competitive in the expert markets. Even with these problems, the mst unspoken critics tend instead t cme frm the mst advanced countries, and dub themselves defenders f the pr countries interests.
These critics believe that the lw income received by unskilled last and high unemployment rates is the read fr the income gap. Still ther's believe that the technical progress and differences in education are much mre at the rt f the income gaps and unemployment problems in these countries. Even with these problems, international trade is crucial fr growth f the global economy. The IMF sees the problems with international trade, but believe it is very necessary fr the improvement f the wrld's growth (Globalization and the Pr Countries: Viewpoint f the IMF). Anther global ppr tunity fr the reduction f expenses and better economic and financial position is usurping f the rating enterprises activities. Every business benefits hugely through usurping because technology is changing s fast, it has t be...
Free research essays on topics related to: economic integration, globalization benefits, international trade, wage countries, des nt
Research essay sample on Des Nt Wage Countries
