Monday, June 4, 2012
TWIF Flattener 6 - Offshoring
Use one of the current events sources linked at http://mrsfridaysclass.wikispaces.com/Current+Events to find a recent news article that relates to, supports, or refutes Friedman's assertion that offshoring was a "flattener." Your comment should include the title of the news article, a link to the article, and a summary of the article including an explanation of how the article relates to this point. Don't forget to check your rubric for evaluation criteria!
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Title: In Pursuit of Nissan, a Jobs Lesson for the Tech Industry?
ReplyDeleteLink: http://www.nytimes.com/2012/08/05/business/the-ieconomy-nissans-move-to-us-offers-lessons-for-tech-industry.html?pagewanted=1&ref=business
This article is all about how car companies, like Nissan, use to only have factories for their cars in Japan. Now Nissan is starting to move some of their factories out of Japan and into the United States. The article also says that people use to say that the popular electronic companies wouldn't be able to have their factories in the U.S. because it would cost too much. Most of those companies have factories overseas. In addition, the article states that there are not that many more American car companies, but they still continue to make a large amount of overseas cars.
This article relates to Diamond's flattener of offshoring because there are car companies that are taking some of their factories and offshoring them into the United States. These car companies that moved factories to the U.S. also created jobs for people that live there. Diamond talks about how American companies moved factories to different countries such as China, but now it is the other way around. Now Asian companies moved their factories over to America.
In the article "Medical Companies Joining Offshore Trend," the author, Andrew Pollack explained how medical companies are now starting to become offshore companies. Before, most offshore companies produced toys, and clothes. Then it moved to electronic devices before getting to pharmaceuticals. Most companies, explained Pollack, turned to offshoring because money was tight. In America, for twenty workers, $1 million barely lasts three months where in India, it lasts more than a year and a half. Therefore, it only seemed logical to move a factory there.
ReplyDeleteThis relates to what Friedman explained in his book because many companies have moved at least one factory to a different part of the world in order to get the same product made, the same way, but at a cheaper cost. This does play a big role in flattening the world because countries are globally competitive over offshoring and strive to be number one. In order to do this, they must be constantly acquiring new technology to keep up with large companies, thus, flattening the world.
Article Link:
http://www.nytimes.com/2005/02/24/business/worldbusiness/24offshore.html
Article: "Offshoring creates as many U.S. jobs as it kills, study says"
ReplyDeleteLink: http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/07/12/study-offshoring-creates-as-many-u-s-jobs-as-it-kills/
Summary:
This article explains possibly benefits for offshoring. The article follows a study taken between 2000 and 2007. By raising profits and productivity, offshoring actually helps companies create jobs for domestic employees effected by loosing jobs to foreign competitors. Surprisingly, increased immigration also provides a boost in domestic jobs for United States citizens.
This article relates to The World is Flat, because it explains the impact of offshoring on individuals and businesses. In the book, Friedman mentioned how offshoring to nations like China can save money and improve profits for large companies. He also explained how these lower prices can make it hard for competitors to thrive. By moving entire factories to foreign countries, companies are growing. On the other hand, the article focuses on the individual and how specific employees will be effected by the increased offshoring.
The article "Coca-Cola plans $5bn India investment to boost growth" talks about how the company Coca-Cola wants to make more production plants in India to open their products to Indian markets. Coca-Cola says that since the introduction of their products into India there has been a consistent sales increase. This is because the Indian marketplace is massive with roughly a billion consumers within its borders.
ReplyDeleteThis article relates to the sixth flattener in The World is Flat because the author, Friedman, speaks of how companies do not just move their production plants for less expensive labor but also for the new marketplace that is opened through the move of production. In the book, Friedman notes that not only can offshoring bring cheap labor but it will open the new country to the products being produced. This is what Coca-Cola is doing in India. They are producing their products cheaper but also opening their products to the Indian markets.
Article:
http://www.bbc.co.uk/news/business-18605454
This comment has been removed by the author.
ReplyDeleteIn the article "'Offshoring risk' to thousands of council jobs," the author describes how many Birmingham City Council jobs are at risks off being off shored in the near future. The offshoring was spark by the amount of money it would save and the 700 jobs it's said to create by 2013. The change will begin with 18 jobs being moved, then 37, then 100. And after that, the number could keep rising.
ReplyDeleteThis relates back to Friedman's sixth flattener because offshoring is now moving to different branches and expanding. This is thought to be the first offshoring of direct workforce. Therefore, the world is still being increasingly flattened through the expansion of what jobs and positions are being off shored. This is also more greatly flattening the Earth in moving these direct workforce position to India.
Article:
http://www.bbc.co.uk/news/business-13622189
In the article: "America and China: Working partners unexpected co-operation, investment, beside the Maumee River" talks about China offshoring a company in Ohio. This company realized that even offshoring would lower costs, but the price of global transportation would just negate the lowered cost. Therefore, this company set up a branch in the U.S that allowed them to not have to pay the large transportation cost to the United States.
ReplyDeleteThis is similar to Friedman's sixth flattener because he talks about moving a branch or part of company away from the headquarters to help save the company money. Due to this, the world is being flattened from the point of view of the Chinese, because they are providing jobs to Americans at higher wages, but much less transportation costs.
http://www.economist.com/node/21560875
In the article "No borders mean flattener world will get us anywhere", Aaron Levie relates this article to the book we read: "The World is Flat". Levie talks about how with the start of netscape in '89, offshoring has flattened the world in communication. Levie also explains how industries in the United States can now communicate with their branches in India, France, London...etc quicker and more efficiently than ever before.
ReplyDeleteThis is similar to Friedman's sixth flattener, because offshoring is moving industries from the United States to China, India, London...etc because the wages and are cheaper and it saves the company's budget. In Friedman's book, he describes how a company in India can now communicate with many other branches of the same company with modernized technology all at once. Offshoring today made simpler than ever thanks to modernized technology.
http://www.bbc.co.uk/news/business-18594623
In the article "Capita staff plan strike over offshoring plans" it talks about how the union workers are going on strike and disagreeing with the plan to move skilled work across the ocean to India. They think that it is wrong to move their work over the ocean because they will not have a job then if the company does move overseas.
ReplyDeleteThis is similar while also not to the sixth flattener that is described in "The World is Flat." While it is similar because it is talking about moving some of a company to another country (like India) it is also different because people do not like this because they will not get to keep their jobs in the company. So this article I think refutes the idea more than it does suport it. This is because people are not happy and are not going o let this happen if they have anything to say about it.
Article:
http://www.bbc.co.uk/news/uk-england-19256488
This comment has been removed by the author.
ReplyDeleteExporting Jobs- Offshoring is The Way To Go
ReplyDeleteFrom offshoring, consumers get the better end of the deal, if it costs less to make a product it can translate to lower prices for the consumer and higher profits for investors. This relates to TWIF because it talks about whole companies uprooting to different countries to help increase their profits and productivity.
http://www.nytimes.com/2004/02/07/opinion/07iht-edfarrell_ed3_.html?pagewanted=all
“Offshore Jobs Play Role In Campaigns And Economy”
ReplyDeletehttp://www.npr.org/2012/07/24/157304952/offshore-jobs-play-role-in-campaigns-and-economy
This article comments on the ongoing argument between Barack Obama and Mitt Romney concerning offshoring. Based off distorted information, both candidates are accused of somehow aiding American companies in their quest for cheap labor. However, according to this article, these rumors do not stand as critical issues in today’s society. Also, many claim the American economy is in its current state due to globalization, as the entire process of offshoring seems unethical to the average citizen. Nevertheless, the competition for jobs, including high ranking ones, in American businesses will escalate due to foreign competition.
With offshoring becoming more prevalent in today’s society, political opponents attempt to pin the blame on a particular person. Regardless, the entire process has grown over the past decade. Foreign countries are becoming westernized due to the influence major American corporations have within that particular nation. This coincides directly with Friedman’s idea of flattening. Moreover, Americans fear that higher ranking jobs will fall to foreign employees. This takes a step close to Mayor Xia’s hope where foreign nations become the “architects”.