Please make necessary corrections from comments

profilemsrack01
mgnt4800_finalprojdraft_r.docx

1

Running head: A STUDY IN GLOBALIZATION AND ITS COUNTERINTUITIVE EFFECTS

35

A STUDY IN GLOBALIZATION AND ITS COUNTERINTUITIVE EFFECTS

PROJECT TITLE: A Study in Globalization and Its Counterintuitive Effects

Prepared for:

Submitted by:

Table of Contents Abstract 4 SECTION 1: INTORDUCTION 5 Introduction 5 Background 5 Evidence to Justify the Study 8 Research Question 9 Definition of Terms 9 Summary 11 SECTION 2: LITERATURE REVIEW 13 2.1 Counterintuitive Effects of Globalization 13 2.1.1 Causes unemployment 13 2.1.2 Spread of highly contagious Diseases 13 2.1.3 Offshoring of Business activities 14 2.2 Factors Associated with Globalization of Businesses 14 2.2.1 Improved Transport 14 2.2.2 Free Trade Agreements Signed by Different countries 15 2.2.3 Improved Communication across the world 15 2.3 Environmental Effects of Globalization 16 2.3.1 Globalization is associated with Air pollution 16 2.3.2 Causes Desertification 16 2.3.3 Cause Soil pollution 17 2.4 Challenges facing Globalization of businesses 17 2.4.1 Stiff Competition 17 2.4.2 Inadequate Capital 17 2.4.3 Cultural Beliefs 18 Summary 18 SECTION 3: ANALYSIS 20 Detailed Information about Globalization and Its Counterintuitive Effects 20 Analysis of the Causes of Counterintuitive Effects of Globalization 21 • Stiff competition 21 • Free Trade Agreements 22 • Improved and modern communication 22 Alternatives and Possible Solutions 23 • Reduction of Taxes by the government 23 Potential Benefits 23 Potential disadvantages 24 • Encouraging Labor intensive market 24 Potential Benefits 24 Potential disadvantages 24 • Provision of Subsidy 25 Potential Benefits 25 Potential Disadvantages 25 SECTION 4: RECOMMENDATIONS AND CONCLUSIONS 26 Conclusion 26 Recommendation 27 Appendices 28 Appendix A – Request for Applied Research Project Approval 28 Appendix B – Action Plan and Schedule 30 Appendix C – Action Plan and Schedule 32 Appendix D – Employee Empowerment Survey 34 References 35

Abstract Comment by Jim Morrison: Two things here. Make certain you have reviewed the template and/or the syllabus. They have required information that must be included in the abstract. Double space between the title Abstract and the first line.

Globalization is the operation of business activities across the world; these businesses involve operations on a large scale. Some of these counterintuitive effects include offshoring of businesses, which is the relocation of activities from one country to the other (Pedersen, 2013). Other negative effects of globalization include environmental pollution due to the massive emission of smoke from the industries as well as downsizing which is a mechanism by which a business uses to reduce its expenses, it can involve retrenchment of employees enhance leading to unemployment (Gachet, 2011). Apart from the negative effects of globalization, there are some positive impacts also which include playing a role in promoting creativity and innovation not only in the country but across the world, it also provides ready markets for both small and large scale business. The factors that have lead to globalization of business operations in the country include improved transport and communication networks in the host country (Button & Vega, 2012), political instability, and free trade agreements signed between the US and other countries across the world. Although globalization of business has emerged in various countries, it is faced with a number of challenges such as stiff competition across the globe, inadequate capital by the small scale businesses to expand their operation to other countries and the diverse cultural beliefs across the country. The solution to the counterintuitive effects of globalization includes reducing the taxes being levied by governments and discouraging automation of business operations; this would help to reduce unemployment in the country, and provide subsidies by the government.

Section 1: Introduction

Globalization of business is not a new thing; it is being talked about by everyone venturing into business. In the US, both small scale and large scale businesses are now operating globally. This is a great step for business sectors in the country. Other developed countries such as China and even Japan have too globalized it business operations. Globalization has had both positive and negative impacts in the past, any business or any investor thinking of operating its business globally ought to be ready to deal with the challenges that come with it. Some of the negative effects of globalization of business is joblessness (Felbermayr, Prat, & Schmerer, 2011). This is due to the reason that globalization tends to minimize the use of manpower and welcome the use of machine (automation). Joblessness and/or unemployment is being brought about by lack of humans previously working in these firms. The other negative effect of globalization is offshoring of businesses; this is the relocation of businesses from one place to the other in order to create a market for its products. These are the effects not expected by globalization. Some of the positive impacts of globalization of business include increased market for products, improved infrastructure across the world, reduced prices of goods as well as many other impacts. Comment by Jim Morrison: You need to be citing more.

Background Comment by Jim Morrison: This section should be the past and current state of your topic and problem. Comment by Jim Morrison: What’s wrong with your formatting.? Everything must be double spaced.

There are a number of advantages a business organization can reap by globalization. It’s characterized by international exchange of business ideas, products and event cultures (Berk, Wiley InterScience, 2010). Because of the freedom for one to operate business anywhere in the world, most investors in both developed and developing countries tend to move their firms or companies to those countries where labor is cheap hence negatively affecting US economy because it causes unemployment. This will further lower the G.D.P (Gross Domestic Product) of the country and hence negatively interfering with the economy of the country (Gachet, 2011).

Another negative effect of globalization is relocation of business. Businesses relocate for reasons such as looking for greater market for their products. Much time is required during relocation of business operation, during this time the business will not be performing normally because of the new business environment. Time is required for survey and establishment of new customers for the products produced. Such new business environment are not suitable for such businesses and hence putting the business at risk of being closed due to its inability to finance its operations.

PROBLEM/ISSUE Comment by Jim Morrison: Correct this as per the template and syllabus and all of your headers. Comment by Jim Morrison: Correct this

The problem is globalization is counterintuitive resulting in increased job loss, offshoring businesses, and downsizing. (International Journal of Business and Social Science, 2011, p. 23) The problem with globalization is that instead of it creating more job opportunities for the citizens, it is causing massive joblessness. In the attempt to reduce their daily expenses firms or companies end up retrenching its employees. Unemployment is a global issue affecting not only developed countries such as the US but it also affects other countries. Comment by Jim Morrison: Why do you have a page number here? You use page numbers only with direct quotes. Comment by Jim Morrison: Explain this? What do you mean?

Globalization is characterized by automation; this is the use of machines to do most operations in an organization replacing manpower. This is aimed at reducing operation cost by organizations (Berk, & Wiley InterScience, 2010) use of machines by firms and industries in the production process; this is aimed at cutting down the cost of production so as to the firms to increase their profit margin. In the process these firms and companies trying to solve their financial constraints through ways such as reducing its employees, they end up causing unemployment in the country. One major problem facing most companies and firms across the globe is management of its finance, some of these firms think that the solutions to the problem is reducing the number if its employees (Downsizing). Comment by Jim Morrison: This should go in the Evidence to Justify the study.

Offshoring of businesses problem associated with globalization (Pedersen, 2013). Offshoring is the act of moving the operation of business from one place or country to the other e.g. moving it from US to Japan. Due to free trade across the world, businesses in the US are now relocating to new business environments in order to get a better place that is conducive for their businesses. Such business environment reduced taxes and availability of raw materials for production of goods. During this transition time commonly referred to as ‘dead time’ the business does not operate normally and therefore there is no income generated. This is a big loss of revenue to the firm, (Mattison, 2010) still the firm will have to take some time to establish itself and familiarize with the new business environment. Comment by Jim Morrison: All of this should go in the Evidence to Justify the stud

Changing business environment will mean seeking for new customers which is a real problem especially when the firm relocated to another country where the products are completely new. The company or the firm will be forced to contact a campaign to create awareness on the use of the product to the public. This is expensive and thus relocated business operations might not be a solution to the issues affecting the performance of the firm. Globalization, therefore, affects both the business and the public at large. The public will suffer because, for those who were employed in the firm, it means they will have to cope with joblessness.

Evidence to Justify the Study Comment by Jim Morrison: This section should be providing the justification of your problem statement. Comment by Jim Morrison: Fix the format

Unemployment is a real threat to both developing and developed countries such as the USA. As a result of unemployment, insecurity has been reported across the world (Deese, 2012). Security is a matter that is addressed by every country and even the whole world through Security Counsel. According to recent research (Nelken, 2010) most crimes in the world are directly or indirectly linked with joblessness. Globalization has played a role in promoting unemployment across the world. For this reason, investigating the counterintuitive effects of globalization is a matter of international importance. Retrenchment of employees in the hope to stabilize the performance of these firms and companies will end up generating more problems than solutions. Comment by Jim Morrison: This is confusing. You talk about unemployment and mention insecurity. Insecurity is when people do not trust management because of job loss. Then you start talking about security counsel? When you right stick to one topic in a paragraph. You start confusing people and Comment by Jim Morrison: This source is too old. Comment by Jim Morrison: You should have defined this term when you mentioned it in the beginning.

Although globalization involves exchange of information and business ideas across the world, on the other hand it comes with a number of negative effects which should be investigated or else globalization will be no importance. The effects need to be investigated for better solutions and recommendations to be realized. Global warming is an issue that is worrying both developed and developing countries; globalization is linked with emission of waste such as smoke to the atmosphere. The smoke together with other greenhouse gases such as Carbon (IV) Oxide, chlorofluorocarbons (CFCs) and many others gases traps heat and therefore gradually leading to global warming. Most of these gases are emitted by the factories and industries. This research study will be aimed at investigating counterintuitive effects of globalization; the research will also recommend possible solutions that will address these effects. The results obtained from the study will be aimed at being used by stakeholders such as the government and the IMF to regulate the effects. Comment by Jim Morrison: How does this affect job loss and downsizing? I suggest you take this out. It is taking one in a different direction. Unless you can link it to joblessness, downsizing, and why companies offshore which is primarily for lower labor costs. This does not fit in this paper. It takes your content out of focus and out of scope.

The outcome of this study might also be used by stakeholders such as investors in making investment decisions; this will enable these investors to make firm decisions and therefore avoid the negative effects that come along with globalization as noted by (Aldersen, 2015). The study might also be used by the government in its plans to eradicate unemployment which according to this study is linked to globalization. The results from this study might be used environmentalists to reduce environmental pollution. Globalization has resulted to emission of huge smokes and gases into the atmosphere, this might lead to global warming, and this is dangerous to all living organisms and should therefore address. The results obtained in this study might be used by policy makers to determine the effects of globalization. Comment by Jim Morrison: You do not have enough evidence to justify this study. You need more research supporting your problem statement.

Definition of Terms

Retrenchment. This refers to the measures taken by an organization such as reducing the number of employees in order to reduce operation cost. This might involve dismiss those already employed or stopping recruitment of new employees. The law demands that etrenchment of employees by an organization should be followed by full compensation; this might be costly (Schuldes, 2011). Comment by Jim Morrison: Correct the format of this section.

Products. These refer to that is availed to a market aimed at satisfying human want.

Companies and organization producing these products have tried to bend them to make the unique from those produced by other firms and companies; this is to obtain a greater market for their products (Weiss, 2013). For a manufacturing firm, for instance, products get procured as raw materials but later sold as finished goods.

Downsizing Reducing the number of employees in an organization present in a payroll by an organization in the hope to reduce its cost (Schuldes, 2011). Downsizing is a good move, but on the other hand, it can result in unemployment in the country. Unemployment can result to increased crime rate hence making operation of business unconducive.

Automation This is the use of machines to run and manage various processes in a factory. This has been recently used to replace manpower hence resulting in unemployment (Aldersen, 2015). The result of automation is increased production of goods and of high quality.

Offshoring This refers to the process by which businesses relocate their operation to another place in the hope to get a more favorable business environment. During offshoring, (Pedersen, 2013) an organization will be forced to stop it business operations hence generating no income during the period. In some situations, offshoring might lead to destabilization of the business.

Globalization Integration of individuals, information and ideas across the world. Globalization has led to improved infrastructure across the world hence promoting business. Globalization (Deese, 2012) has been linked with unemployment across the world due mechanization that comes with it.

Summary

Globalization refers to the massive exchange of ideas across the world, globalization in the past years have been associated with both positive and negative effects that affect not only the operation of businesses in the United Sates but also across the world. Globalization has been associated with unemployment (Felbermayr, Prat & Schmerer, 2011) because globalization has forced most firms and companies to use machines in most of their operations; this has lead to the retrenchment of thousands of employees (Schuldes, 2011) across the world.

Globalization has led to downsizing this is where forms and industries try has much as they can to reduce their operation costs through retrenchment of some employees. This will cause unemployment in the country and will to have a long-term effect in the security sector. Apart from retrenchment; some companies might also relocate to other places or countries where they think it is conducive for the growth and establishment of their businesses. Relocating these businesses will also cause unemployment in countries or places where these firms were previously located. The burden of creating job opportunities will be left for the government. Globalization not only affects business operations but also the public at large, this is through creating unemployment in the country and across the world.

The effects of globalization have to be keenly investigated in order to determine the impact it has on the environment and the economy of the world. Sources reveal that globalization has contributed to the risen increase in the earth’s temperature; this is due to the gases emitted into the atmosphere. For this reason, one way to mitigate global warming is to address the effects caused by globalization. Increased global temperatures have led to the extinction of some species hence reduced biodiversity. The outcome of this study might be used by different stakeholders to further investigate the effects of globalization and their association with a number of issues such as security and unemployment.

Apart from the negative effects of globalization, some of the positive effects of globalization of businesses include the following it has made it possible for trade to be contacted freely between states in the US and even across the world through free trade agreements. Globalization has made it possible for investors only in the country to invest across the world. The positive impacts of globalization can therefore not taken be for granted.

SECTION 2: LITERATURE REVIEW Comment by Jim Morrison: This literature review should offer insight and support to your problem statement and globalization. It should focus on leadership’s impact on globalization as it relates to downsizing, offshoring, etc. You could have had three areas for your literature review: leadership and globalization – dealing with the new work environment, Benefits of Globalization and Disadvantages of Globalization. Your focus is on unemployment, downsizing, and offshoring which are the negatives and some of the outcomes of the negatives are increased stress and workloads on employees, distrust in leadership, short term gains from laying off employees. However, long-term impacts are negative and studies show companies and employees never recover from layoffs and downsizings. . However, you can discuss the positives which include technology and virtual teams providing 7 X 24 service, reduction in labor costs, increased productivity.

2.1 Counterintuitive Effects of Globalization

2.1.1 Causes unemployment

It is unexpected of globalization to be one of the factors causing unemployment across the globe. Industrialization involves the production of goods and services in large scale, this is only possible by mechanization. This transition causes unemployment; it can either lead to no more recruitment of new employees or reducing the number of already employed employees in an organization, this agrees with a report by (Brauch, 2008). Although such a strategy is taken in order to reduce the cost of operation by the business organization, on the other hand, businesses will have to cope with insecurity and increased crime rate due to unemployment. This will too have an impact on the Gross Domestic Product (GDP) of a particular country, therefore negatively affecting the economy of the country, hence having a long-term negative impact on the operation of businesses in the respective countries. Such an environment will not be conducive to the operation of businesses.

2.1.2 Spread of highly contagious Diseases Comment by Jim Morrison: What does this have to do with job loss? Remove this.

Globalization involves free movement of individual across the world, this too will create a platform where individuals from different races, background, religion, gender and even health status together. Viral diseases will have been spread in this manner. Globalization also led to the spread of contagious diseases such as tuberculosis (TB), Ebola, cholera and even measles. These diseases if not regulated might clear the world’s population within a short period of time. These diseases will make humans weak and thus unable to perform their respective duties.

2.1.3 Offshoring of Business activities

Offshoring refers to that process of relocating or moving the operation of the operation of business activities from one place normally one country to the other. This is a strategy taken by the management of businesses in a hope to reduce expenses incurred in salaries and wages. Businesses might relocate its operation in order to create new markets to its products and hence increase its profit margin. Some businesses relocate in order to avoid unconducive business environments in United States but in some cases this might not occur but rather these businesses are faced with other changes that come along with the new business environment. Offshoring of businesses has a negative implication for both the business and the economy of United States in general. While the firm is forced to spend much in the advertisement of their services and the products they deal on, the public will have to cope with unemployment especially in the country where the business was initially located. Some businesses have collapsed due to the relocation of their operations; this is because they might relocate to countries or places where such businesses don’t thrive. For instance, a company operating on the sale of pork meat that relocates to countries like Islamic State countries where their culture and religion do not allow consumption of pork meat such a business will automatically collapse and hence lead to its closure in the country. Comment by Jim Morrison: There are no citations here. Cite your work.

2.2 Factors Associated with Globalization of Businesses

2.2.1 Improved Transport

Improved air transportation, improved roads, and the use of electric trains make transportation of bulky and perishable goods cheaper to deliver. With the use of air transport, it made it possible for overseas businessmen and women to move with ease from one country to the other coordinating and ensuring that their businesses run smoothly. Without these means of transport, it would be much difficult to access certain countries for example, Islands use air transport and water transport. Bulky goods are too expensive to be transported from one place to the other especially for long distances, as noted by (Button & Vega, 2012) but the use of electric trains has made it possible for bulky and perishable goods to transport cheaply from one place to another. This reduces the operation costs and thus enables these businesses to thrive. The use refrigerated containers across the world made it possible for highly perishable and valuable goods are securely transported from one country to the other.

2.2.2 Free Trade Agreements Signed by Different countries

One of the factors that hinder free and fair trade is the hash terms and condition barring trade in different countries, but due to the free Trade Agreements signed and agreed on by different countries, it made it possible for Worldwide enterprise or Multinational Corporation to thrive. These agreements allowed individuals to trade anywhere in the world, so long as the businesses, they trade on are legal. Some international organizations such as International Monetary Fund (IMF), World Trade Organization (WTO), World Bank and many others promote and advocate for free trade across the world hence promoting globalization of business as noted by (Kwakwa, 2008). Some of these international organization provides short and long term loans for small scale and large scale businesses thus enabling them to grow and expand their operations across the world.

2.2.3 Improved Communication across the world

Communication involves passing of information and ideas from one person or to the other. Overseas or international businesses have been made easy by the use of the internet, emails, phones, and many other forms. By the use internets, buyers and sellers can interact and transact by the use of payment methods such as the use of PayPal. This mean of payment enables individuals to transact online without the parties involved coming into contact with each other. Different means of communication such as the use of satellite TV channels have made it possible for advertisement of these goods and services to be possible. The use and application of these products can be displayed on the TV channels and therefore potential customers across the globe would be able to know how the products are applied and hence go for it in the near future. Generally, improved communication increases marketing avenues of products across the world thus enhancing globalization and its growth a report that agrees with (Barfield, Heiduk & Welfens, 2012).

2.3 Environmental Effects of Globalization

2.3.1 Globalization is associated with Air pollution

Globalization is characterized by industrialization that is the development of industries on a large scale. These industries and factories emit gases such as Carbon (IV) Oxide, Carbon (II) Oxide and others gases into the environment, this together with solid waste makes the air unclean. All living organisms require air to carry its physiological processes; if this clean air is not available then life will not exist (McMichael, 2013). This means even human beings will not be able to survive. The dust particles emitted from industries can make the air unsafe for use.

2.3.2 Causes Desertification

Globalization in one way or the other has been linked with desertification. This is because the establishment of these firms and factories requires much space which will require clearing of vegetation. In developing countries where firewood is mostly used as a source of energy, this will result in deforestation and in the long run desertification will set it. Desertification will have negative impacts on the world’s food supply because there will be no moisture needed for the growth of crops. This will lead to increase in the prices of food across the world hence the public will spend much of their little income to buy basic food and they will reduce their expense on the so-called luxury foods. This will, therefore, affect globalization in the long run due to reduced market.

2.3.3 Cause Soil pollution

Globalization leads to the development of industries and factories, the waste products such as used oil, chemicals disposed into the soil, this kills organism present in the soil which are important in aeration and improving soil fertility. Toxic and untreated wastes released into the soil will kill these living organisms, therefore, affecting soil fertility. Poor soil fertility will lead to low productivity leading to food shortage across the world.

2.4 Challenges facing Globalization of businesses

2.4.1 Stiff Competition

It is normally said that competition is healthy and is to improve the quality of services and goods being offered in the global market. Globalization has resulted in a cutthroat competition where firms both small and large scale try to outdo each other in their line of operation. Such firms might decide to drastically reduce it prices of goods and services beyond the standard one so as to disadvantage their competitors as documented by (Zamagni, & Zamagni, 2010). This is unethical and goes against the norms and standards of operating businesses. As a result, the competitors will have reduced sales because customers will go for the lowest prices in the market, in the long run, the competitors in the market will close down hence leaving the firm to operate a monopoly kind of business.

2.4.2 Inadequate Capital

Much capital is required in the expansion of businesses across the world. Inadequate or lack of capital disadvantaged small-scale businesses that want to expand its operation across the world. In some countries small scale businesses cannot access loans beyond certain limits; this makes it difficult for the owners of these businesses to expand it. Without adequate funds, globalization of businesses would not be possible.

2.4.3 Cultural Beliefs

Businesses in most cases do not operate in complete isolation but rather operate in an environment; this environment affects its performance. Culture and belief of a given community affect businesses in one way or the other. Overseas businesses are normally affected by the culture and the belief of the people, for instance, a company or a firm operating in the processing of pork might not thrive well in Islamic states or countries because of their belief that it is unholy. Such a business will have to close its branches in such countries for lack of customers.

Summary

In summary, Globalization is a wide area and has a long-lasting implication in the living standard of the people and even the economy of the world. Globalization has been associated with environmental pollution such as air pollution, soil pollution and even global warming. This is because the waste products from the industries such as the smoke, chemicals, used oils, and gases are released into the atmosphere. Certain factors such improved communication, improved transport and the various Agreements on free trade have made it possible for businesses to operate globally with minimal restrictions. Some International Organizations such as the International Monetary Fund (IMF) and the World Bank financially support the growth and expansion of small businesses. Globalization has also been directly or indirectly linked with counterintuitive effects which include unemployment, offshoring of businesses and even downsizing, this is unexpected of globalization. We expect globalization and expansion of businesses to create more and more job opportunities for our ever growing population but it is the other way round. Globalization currently is being faced with a number of challenges which include stiff competition globally, cultural beliefs and inadequate capital for expansion of these businesses.

SECTION 3: ANALYSIS

Detailed Information about Globalization and Its Counterintuitive Effects

Globalization of business also known as world enterprise of business is the operation of business activities across the globe. In both US and other countries such as China, both small scale, and large scale have been globalized. Globalization is not totally unbeneficial nor it is totally of benefit but it has both its negative and positive effects. The negative effects are what it is referred as Counterintuitive effects. In the United States globalization has occurred in every business contacted in the country, this has come with a number of issues or problem which include unemployment in the country. It is unexpected for globalization to cause unemployment but in the United States thousands of jobs are unemployed as a result of globalization (Åslund, Dąbrowski & Peterson Institute for International Economics, 2008). The reason for this is because globalization is characterized automation where nearly all work is done by machines replacing manpower. As a result of these most individuals willing to work in the firms and factories don’t get the opportunity. The economy of the country depends majorly on the income from the citizens which is the major source revenue in the country, unemployment in the country would lead to reduced GDP (Strawser & Ryan, 2014) hence negatively affecting the economic growth of the country. Unemployment is as a result of the management of various factories trying to reduce or cut their expenses in order to compete favorably in the global market, they can achieve this by reducing the number of employees working in their firms (downsizing). In the US, factories have been relocating to other countries as a result of free trade, this is what is referred to as offshoring. This means these firms would have to retrench its employees and stop recruiting other new employees into their firms. This does not solve the existing problem of unemployment in the country but rather worsens it. Free trade agreements among different countries in the word have easy movement among the investors; it has enabled investors to move all over the world looking for an enabling environment for their business. Such opportunities occur mostly in developing countries (Kamel, 2006); this leads to developed countries such as the US to be unattractive to investors.

Analysis of the Causes of Counterintuitive Effects of Globalization

The global market is competitive each firm or an organization is trying to outdo each other in the market and enjoy the benefits of being a monopoly. In the United State, this issue has led to most firms close down hence affecting the economy of the country (Åslund, A., Dąbrowski & Peterson Institute for International Economics,2008). There are a number of factors or causes that have lead to the Counterintuitive effects of globalization such as downsizing, offshoring, and many others. The causes are discussed below in detail.

• Stiff competition

The global market is characterized by stiff competition, this is even worse among firms operating on the same commodities or the substitute, each firm or business organization would try to compete with each other in order to remain in the market. Due to competition, firms, especially in the US, have relocated to other countries where competition is not stiff. Relocation of these firms to other countries (Hirst, Thompson & Bromley, 2015) creates unemployment in the country hence affecting the growth of the country’s economy in the long run. As a result of this kind of a competition, most firms or companies resort to reduce the number of its employees through retrenchment so as to reduce its costs of operation. Reduced cost of operation would mean such a company would have to sell its products or services at relatively reduced prices than others hence increasing its profit margin (Esping-Andersen, 2013). On the other hand, some firms may decide to evade payment of taxes as a way of reducing its costs; this has a negative impact on the economy of the country. Globalization comes with stiff competition, this may let to the closure of some firms, for instance, small-scale businesses have closed down in the US due to competition as noted by (Gerber, 2012). This as contributed to the poor performance of the country’s performance.

• Free Trade Agreements

This allows countries to freely trade among themselves with a minimum restriction such as the imposition of tariffs. In the United States, most investors and businessmen and women have moved to other countries to invest in different businesses due to the free trade agreements. This is a nice thing but on the other hand, the country has had to coup with the issue to joblessness because the firms and factories that used to operate in the country have relocated to other countries (Kamel, 2006). This automatically has negatively interfered with the economy of the country due to drastically reduced income among the citizens in the country; this equally translates to a reduced amount of revenue collected. This affects the rate at which the economy of the country grows thus affecting the country’s economy.

• Improved and modern communication

Communication is the passage of information from one party to the other, without proper communication, a business cannot be easily carried. Globalization of business depends entirely on the flow of information, it is through communication that a seller and a buyer agree on the price of a commodity with modern communication the contact between the seller and the buyer is minimized because goods can be sold online and payment be made through the same mode. This is much advanced in the United States, (Ramrattan & Szenberg, 2007) where an individual uses his or her home as an office; this is good but in any has created unemployment in the country. The reason is because the youths you used to be employed in the firms and companies are no longer getting these jobs because the seller and the buyer communicate through online.

Alternatives and Possible Solutions

To bring to an end to this issue, all the stakeholders including the government should be fully being involved. Some of the possible solutions for this issue include reduction of taxes by the government, encouraging the use of manpower (labor intensive) rather than capital intensive (Carr, 2015) provision of subsidy to investors and other business owners by the government, this is to reduce the operation costs. These possible solutions are discussed below.

Solution 1: Reduction of Taxes by the government

Description. Globalization enables investors to operate their businesses across the world; this makes them identify places or countries where businesses flourish. For example, (Hirst, Thompson & Bromley, 2015) in the US, some businesses owners have resolved to relocate their businesses to other countries where taxes levied are relatively low. Reduction of taxes can be done by the government through Revenue Authority in the country. Taxes levied in any country can have an impact on the economy of the country; moderating it would make businesses in the country not expensive.

Potential benefits. There are several benefits that come with the reduction of taxes; one is that it cuts don the operation costs hence attracting more investors into the country. The other benefit is that there would be more investors in the country hence creating job opportunities hence reducing unemployment in the country and developed nation such as the US as noted by (Ramrattan & Szenberg, 2007). Reduction of these taxes would ensure that investors increase their profit margin hence enabling them to sustain their businesses in the global market hence enabling them to establish branches all over the country and in the process increasing job opportunities.

Potential disadvantages. One potential disadvantage of this solution is that it reduces amount of revenue collected in the country as noted by (Åslund, Dąbrowski & Peterson Institute for International Economics, 2008) hence interfering with the projects initiated and supported by the government hence the government would be negatively affected and its mandate to provide the services to the people is also affected and interfered with. The public would be denied the opportunity to get the important services such as improved security, better health services. Illegal businesses in the country might set in due to reduced tax being levied.

Solution 2: Encouraging Labor Intensive Market

Description. The use of the machine in all process of production in most firms in the US (Carr, 2015) has replaced manpower. Automation is contributed much in causing unemployment in the country, encouraging the use manpower rather than machines would reduce joblessness in the country.

Potential Benefits

This solution has greatly reduced unemployment which is the major problem affecting youth in the country. Human labor is more flexible in production than the use of machines in production. The other benefit of using manpower in production is that it is much cheaper than the use of machines hence reducing the cost of production. Most machines can only be operated by skilled employees who are expensive and difficult to get. In the US, (Carr, 2015) such skilled manpower to operate on these complex machines are too expensive hence making automation in production more expensive than manpower.

Potential disadvantages

Manpower is slow hence reducing the rate at which goods are produced. The other disadvantage is that manpower is normally affected by what is happening around the person hence productivity would entirely depend on the, mood and the attitude of the employee. With the use of manpower, most casualties have been reported in health sectors due to the injuries these employees encounter in their workplace. 

• Provision of Subsidy

The subsidy is the grant from the government to entrepreneurs or investors operating on business that is for the good of the general public. This will help to reduce the expenses incurred in production hence such enterprises would be able to increase their productivity and hence be able to support the growth of the country’s economy as reported by (Livermore & Revesz, 2013).

Potential Benefits

It reduces the cost of production; (Livermore & Revesz, 2013) this enabled these investors and entrepreneurs to increase job opportunities in the country thus reducing the rate of unemployment in the country. With the subsidy, it means these firms and factories will have to produce goods cheaply hence leading to the reduction in the prices of goods in the market.

Potential Disadvantages

The subsidy is a burden on the side of the government. In some instances, the identified organizations don’t respond by either creating new opportunities for youths or even reducing the cost of their products but rather they operate normally with their fixed prices. This would not, therefore, benefit the public as intended by the government.

Section 4: Recommendations and Conclusions

Recommendations

Which is the solution you selected to implement from the three proposed and why?

Conclusion

Globalization is the operations of a business in a worldwide. Globalization in the US has a number of both positive and negative impacts. Some of the positive impact includes improved infrastructure, increased revenue to the country and promotion of growth of small scale businesses due to availability of international markets. On the other hand, the negative impact of globalization cannot be overshadowed because its effects (Counterintuitive effects) as felt across the country. Such effect includes offshoring of businesses. This is the relocation of businesses from one place to the other I the country, this causes unemployment in the State or the region those businesses were before the relocation. The other Counterintuitive effect of globalization is that it causes unemployment in the country due to its nature of automation; this has a direct effect on the country’s economy and its citizens. Globalization does affect the government only but also the ordinary citizens, therefore, the government should involve the general public in evaluating and assessing its impact to the country. It also came into my mind that there is no way a country such as the USA or any other country can do without globalization and therefore there is need of checking its negative impacts. Some of the factors leading to the Counterintuitive effects of globalization include free trade agreements, improved transport, and modern communication technologies such as the use of WhatsApp. Globalization in the US is being faced with a number of challenges which include cultural beliefs of its citizens, inadequate capital, and stiff competition among other challenges.

Recommendation

• There is need for the government to amend policies that reduce the use of machines in production activities in companies and industries to minimize unemployment in the country.

• The youth should be encouraged to be entrepreneurs rather than being job seekers

• Both governments in the country should regulate offshoring of businesses because it is one of the factors contributing to unemployment in the country.

Appendices

Appendix A – Request for Applied Research Project Approval

REQUEST FOR APPLIED RESEARCH PROJECT APPROVAL

Student Name

John Doe

Cohort Number

BM 341

Date:

Preliminary Project Title

Problem/Issue

Proposed Approach

*Organization Approval Signature

Date:

Shorter University Instructor Signature

Date:

*Optional when approval required

Appendix B – Action Plan and Schedule

ACTION PLAN AND SCHEDULE

MGNT 4800 – Applied Research Project

STUDENT NAME AND COHORT NUMBER:

INSTRUCTOR APPROVAL AND DATE: ____________________________________

This action plan and schedule begins with the second week of MGNT 4800 and ends with the last week of MGNT 4800, unless otherwise directed by the instructor to submit additional weekly reports. The action plan and schedule should be created in weekly increments and referenced, by week, on your weekly progress report.

Week

Scheduled Activity

Status

Planned

Completion

Date

Actual

Completion

Date

1

Mandatory Class – Introduction review syllabus and expectations

Completed

5/4/2016

5/4/2016

2

Submit Applied Research Project Approval Form and Project Action Plan Schedule for approval including Weekly Progress Report

Completed

5/11/2016

5/11/2016

3

4

5

6

7

8

9

10

Presentation – Present and submit final project and completed forms.

Appendix C – Action Plan and Schedule

BUSA 4700 – Applied Research Project

Weekly Progress Report

Students are required to submit weekly progress reports to their BUSA 4700 instructor until week nine of this course.

Student Name and Cohort Number:

John Doe, BM 341

Week of:

5/11/2016

Accomplishments:

Created and submitted the Applied Research Project Request for approval, developed the Action Plan and Schedule, and the first Weekly Progress Report. Started working on Section 1 research.

Issues or Problems and Proposed Solutions:

No issues or problems were encountered.

NOTE: If you are not up-to-date with your action plan, provide reason(s) and describe actions to get back on schedule.

Appendix D – Employee Empowerment Survey

This is a form.

References

Aldersen, A. S. (2015). Globalization and Deindustrialization: Direct investments and the Decline of Manufacturing Employment in 17 OECD Nations. Journal of World-Systems Research, 3(1), 1-34.

Åslund, A., Dąbrowski, M., & Peterson Institute for International Economics. (2008). Challenges of globalization: Imbalances and growth. Washington, DC: Peterson Institute for International Economics, Center for Social and Economic Research.

Barfield, C. E., Heiduk, G. S., & Welfens, P. J. (Eds.). (2012). Internet, Economic Growth and Globalization: Perspectives on the New Economy in Europe, Japan and the USA. Springer Science & Business Media.

Berk, J., & Wiley InterScience (Online service). (2010). Cost reduction and optimization for manufacturing and industrial companies. Hoboken, N.J: John Wiley.

Brauch, H. G. (2008). Globalization and environmental challenges: Conceptualizing security in the 21st century. Berlin: Springer.

Button, K., & Vega, H. (2012). Globalization and transport. Cheltenham: Edward Elgar.

Carr, N. (2015). The glass cage: Where automation is taking us. Random House

Deese, D. A. (2012). Globalization: Causes and effects. Farnham, England: Ashgate.

Esping-Andersen, G. (2013). The three worlds of welfare capitalism. John Wiley & Sons.

Felbermayr, G., Prat, J., & Schmerer, H. J. (2011). Globalization and labor market outcomes: wage bargaining, search frictions, and firm heterogeneity.journal of economic Theory, 146(1), 39-73.

Gachet, E. (2011). Globalization, Unemployment and the Welfare State. St. Gallen.

Gerber, D. J. (2012). Global competition: Law, markets, and globalization. Oxford: Oxford University Press.

Hirst, P., Thompson, G., & Bromley, S. (2015). Globalization in question. John Wiley & Sons.

Kamel, S. (2006). Electronic business in developing countries: Opportunities and challenges. Hershey, PA: Idea Group Publishing.

Kwakwa, E. (2008). Globalization and international organizations. Aldershot: Ashgate.

Lechevalier, S. (2015). Globalization and labor market outcomes: De-industrialization, job security, and wage inequalities. Heidelberg: Springer.

Livermore, M. A., & Revesz, R. L. (Eds.). (2013). The globalization of cost-benefit analysis in environmental policy. Oxford University Press.

Mattison, R. (2010). Revenue assurance standards - release 2009 paperback. S.l.: Lulu Com.

McMichael, A. J. (2013). Globalization, climate change, and human health.New England Journal of Medicine, 368(14), 1335-1343.

Pedersen, T. (2013). The offshoring challenge: Strategic design and innovation for tomorrow's organization. London: Springer.

Ramrattan, L., & Szenberg, M. (2007). Distressed US industries in the era of globalization. Aldershot [u.a.: Ashgate.

Robertson, R., & World Bank. (2009). Globalization, wages, and the quality of jobs: Five country studies. Washington D.C: World Bank.

Schuldes, M. (2011). Retrenchment in the American welfare state: The Reagan and Clinton administrations in comparative perspective. Berlin: Lit.

Strawser, C. J., & Ryan, M. M. (2014). Business statistics of the United States, 2013: Patterns of economic change. Lanham, Md: Bernan Press.

Weiss, K. D. (2013). Building an import / export business. Hoboken, N.J: Wiley.

Zamagni, S., & Zamagni, V. (2010). Cooperative enterprise: Facing the challenge of globalization. Cheltenham: Edward Elgar.