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Article 1, One thing I thought was smart of the author was how they said cost-savings is in the labor. If most people in the US were paid what people in developing countries were paid we would not be able to survive. Also since we are a developed country we are also a greedy country and we always want more. So not only do we cost so much to work but when we get hired after a certain time we want more money. We feel have been successful at our job and we know what were doing so we feel we deserve more money then we started out at. Labor is a huge cost saver for companies that want to move production across shores. I belive the article said that a US worker would get paid $20 an hour were as a worker in India would get paid $2 dollars an hour. In an 8 hour work day that would be $14. Most people in the US could not live on $14 dollars. Another way to cut cost is to substitute low cost production for high cost production. They gave the example of having people in put checks into a computer rather than buying a computer imaging software. They also gave the example of how the US uses 90% of its car wielding by machines and China only uses 30%. They still use manual labor  in these developing countries because the cost is cheaper then putting in new technology. 

By being able to keep things cheap in these developing countries the companies can save money. In return of saving money they can lower the cost of what they are making and selling. Of course they will have to deal with the customers that get upset abut things not being made in America or jobs being taken away which is understandable. There is something that brings value to that product you buy that says MADE IN THE USA on it. But if it keeps the company alive by offshoring their business then I say why no? The author also states that by moving companies offshore they can upgrade workers and managers and still save money. Instead of paying them more they can put money into higher skilled training classes that will improve the skills of these workers and managers.

Article 2, Companies have developed a new tactic of reducing cost by moving their jobs into lower wage locations. This has been the start of globalization and how it has led to industries being transformed, this has helped businesses recognize themselves and realize their performance and recognize their full potential which has been made possible by globalization. It has also led to development of strategies which have been used to capture these opportunities. Large trade companies have been lured from their places of origin in search of huge numbers of costumers in the foreign markets. Countries such as Japan, Europe and North America developed plants and even hired employees in the low wage countries and sent the same goods they produced back home.

The whole process of moving to low wage zone is to search for low production cost, reduced cost of labor and the opportunity of obtaining new markets for their good. Most of the managers aim at reducing cost but in one way or another they should view it as a way of creating revenues. Companies which can be able to capture the full strength of globalization will experience and increase in revenue while those that don’t are most likely to lose the shares in the market. Therefore, globalization has come as a benefit for each organization which will take advantage of it, because it will bring success and development unlike those companies which don’t.

Companies moving to low wage areas is a good idea because they are able to upgrade both managers and workers with skills and save money. They can recruit more workers for the jobs available and even provide them with training. This will help this organizations develop themselves and have a plan. Thus, it is a very good business opportunity for any firm