General Motors is a US-based multinational company that was established in 1908. In the recent times, it has grown to be among the world’s top ten leading enterprises that produce cars. In 2008, it employed 226,000 workers signifying its fast growth. In the same year, it was ranked number nine in the Fortune’s Global 500 list. General Motors is an example of a multinational country that has outsourced its services to the third world countries. Global stratification is the arrangement of people in a hierarchical process in the society. A stratification result to inequalities in the society especially when it comes to wealth distribution, sharing of resources, prestige, and opportunities (Boundless, 2016). Thus, this essay will focus on how global stratification affects the local culture the impact it has in the US and identify who is the greatest beneficially.
How does global stratification affect local culture?
In reference to this article Global Stratification, (2016), Global stratification has an impact on a local culture in both positive and negative ways. The good side of it is that by practicing outsourcing, it gives an advantage to the people in the third world nation’s countries employment opportunities. Many individuals in the third world countries are jobless and are in dire need of employment. As a result, of outsourcing jobs are created thus reducing the level of dependence in the society while at the same time the lives of those employees are improved. A good example of a company that has adopted outsourcing model is the General Motors. The company has set some of its branches in Africa while outsourcing labor from the regions within thus having an impact on the local culture.
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Global stratification has been viewed to have an adverse effect on the local culture this is because the process does not upsurge the overall wealth of a particular nation. It is viewed that the locals are in the process of developing and because of that, the income of such countries is still low compared to that of the developed nations.
Effect of global stratification in the United States
Beside Global stratification having an adverse effect on the neighboring nations it is also considered to have both positive and negative effects in the United States. However, the process in which is done in US is in accordance with the wealth and power which is different from the developing nations. Due to this, there have been a lot of immigrants entering US; immigrants are beneficial to the United States because they provide cheap labor to many firms (Global Stratification, 2016). Global stratification also benefits the United States and the other nations because it gives them an opportunity experience and shares each other’s social standards by interacting and interchanging their resources
Global stratification affects the United States negatively because large enterprises are making a lot of money and at the same time, the residents are losing employment at the expense of immigrants. Moreover, most companies prefer outsourcing cheap labor while setting up branches in the same countries due to low taxes and tax incentives they receive as a result, the US loses in the process. However, to the individuals, it becomes hard to make such a change (Global Stratification, 2016).
The winners of global stratification
In the previous decades, it has been thought that the wealthy and the middle class of the developing market economies are the winners of global stratification. However, no existing literature proves this claim. Nevertheless, there are household surveys that have been combined by the World Bank that explains the winners and the losers of global stratification. The biggest winners of global stratification are the nations that have high per capita income rates such as the United States. On the contrary, the greatest losers are the nations that have low per capita income (Milanovic, 2012)
Conclusion
From the analysis it is clear that Global stratification is beneficial to some while on the other side it has a negative impact to the wider society. It is for this reason that companies such as General Motors should try and find a balance. Moreover, the government should also create a favorable environment for the companies to thrive where they are established this can be done by offering them tax holidays and as a result, create employment to the locals and avoid outsourcing.
References
Boundless,. (2016). Global Stratification and Inequality : Retrieved from https://www.boundless.com/sociology/textbooks/boundless-sociology-textbook/global-stratification-and-inequality-8/global-stratification-68/global-stratification-and-inequality-401-10459/
Global Stratification,. (2016). 2012books.lardbucket.org : Retrieved 13 August 2016, from http://2012books.lardbucket.org/books/sociology-brief-edition-v1.0/s09-05-global-stratification.html
Milanovic, B. (2012). The Real Winners and Losers of Globalization - The Globalist: The Globalist. Retrieved 13 August 2016, from http://www.theglobalist.com/the-real-winners-and-losers-of-globalization/
