But there exists really a thin demarcation line between the two. However, it has said that the term has been used interchangeably.
Consequently, a debate has ensued concerning the benefits and costs of the practice as well as how to categorize it as a phenomenon. Many companies also outsource customer support and call center functions, manufacturing and engineering. Such a relationship between economic entities is qualitatively different from traditional relationships between buyer and seller of services in that the involved economic entities in an "outsourcing" relationship dynamically integrate and share management control of the labor process rather than enter in contracting relationships where both entities remain separate in the coordination of the production of goods and services.īusiness segments typically outsourced include information technology, human resources, facilities and real estate management, and accounting. The process is now commonly called outsourcing and offshoring.Īccording to Wikipedia, the term "outsourcing" involves transferring or sharing management control and/or decision-making of a business function to an outside supplier, which involves a degree of two-way information exchange, coordination and trust between the outsourcer and its client. With this, most American call centers now employ employees from probably all parts of the globe. To illustrate, some leading call centers in the United States opted to situate one of their business on third world countries like Malaysia and the Philippines, where apart from paying cheaper salaries are able to deliver of-quality performance through effective English communication. Furthermore, service and technical jobs are currently undergoing a large exodus to foreign labor too. One of the visible effects of the globalization trend in the United States is that American companies have migrated most of their manufacturing jobs to foreign countries where it is cheaper to do business. Theodore Levitt is usually credited with globalization's first use in an economic context.
The International Monetary Fund (IMF) notes the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions, free international capital flows, and more rapid and widespread diffusion of technology. It added that the globalization of the economy depends on the role of human migration, international trade, movement of capital, and integration of financial markets.
The same website also carried with it a broad definition that globalization – in economic terms – is the convergence of prices, products, wages, rates of interest and profits toward developed country norms. Order custom essay The Impact of Globalization on US Banking It has been said primarily because globalization has amalgamated into the everyday lives of men, making it more like a standard which every people conform with. Also, the same website quoted The Encyclopedia Britannica saying that globalization is the "process by which the experience of everyday life is becoming standardized around the world." This phenomenon which in some way or another has created a connection between and among people all over the world making it into one unified system is coined as ‘ globalization.’Īccording to Wikipedia, the term ‘globalization’ refers to or is considered an umbrella term which involves a unitary process inclusive of many sub-processes (such as enhanced economic interdependence, increased cultural influence, rapid advances of information technology, and novel governance and geopolitical challenges) that are increasingly binding people and the biosphere more tightly into a system. Apart from these, this global connectivity also allows people from all over the world to share resources through trade and even idealism through international relations. In a fast-paced world, there has been a tremendous increase in global connectivity in every aspect of society which primarily includes both the economic and political strata.