Globalization: a Closer Look

Globalization: A Closer Look

Globalization is not new, for thousands of years people have been buying and selling from each other, even before the world wars corporations were setting up business in other countries. Technology has increased globalization or made it quicker and easier for people to travel and communicate between locations.

The U.S. lost about 2.2 million manufacturing jobs between 1990 and 2008, particularly in the electronics, aerospace and auto industries, according to the U.S. Bureau of Labor Statistics. Offshoring, as well as more-efficient manufacturing, contributed. Intel Corp., Arizona’s 11th-largest private employer, with about 9,700 workers in Chandler - gets at least 80 percent of its revenue from outside the U.S. About 55 percent of its 82,500 workers are in the U.S. “Besides the U.S., Intel has factories in Barbados, China, Costa Rica, Ireland, Israel, Malaysia, the Philippines, and soon also in Vietnam(Ossa, 2012, p. 15).”

Intel is one of the companies that out-source part of the production process of components needed. “While the skilled-labor-intensive part of the production process (e.g. wafer production) is located in developed countries, the unskilled-labor intensive part (e.g. assembly and testing) is located in developing countries. All production facilities are fully owned by Intel (Ossa, 2012, p. 16).”

As an international business model, Intel also has helped to transfer its core values and culture of global competitiveness. Intel emphasized long-term planning, discipline, results, innovation and ethics. Intel was a pioneer in the area of worker safety and health. Following Intel’s best practices, the National Insurance Institute (INS) – the workers’ compensation insurance entity and general insurance supplier in Costa Rica – created the first national Job Safety and Health Standard.

Globalization has helped corporations grow, the downside can be that cost and competition prompt companies to close American factories and...