In today’s society we depend on companies worldwide to provide goods and services to satisfy our needs and wants. These companies worldwide are called multination company which is defined as a company that has one head office but has operations in more than one country. These operations deliver goods and services to many different areas. “Although this can lead to great sales and provide the services around the world, this can lead to what is called global stratification” (Ivancevich, J. M., & Baker, J. C. 1970). Global stratification is defined as the inequality amongst countries in the world. The differences in rich and poor countries and the patterns of global stratification are imperialism, world system, culture of poverty and dependency theories. “Each country that is stricken with poverty will be becoming rich as the United States is becoming poor” ...view middle of the document...
The positive effect this has no the United States is that the price of merchandise will be cheaper, due to the fact materials that are used to make the product is cheap, but if made in the United States the price will rise for sales, because the materials is higher quality. When we look at the government having the company out of the nation will be cheaper on the economy. Nike is a huge company in which would need at a bailout from the government if something negative would affect the company.Globalization is not easily described. For some, it is a positive process resulting in distributed social principles globally. For others, the phrase has a damaging significance, and experts see it as marginalizing less prominent societies, particularly those in the third world. Some experts make reference to it as the "McDonaldization" of lifestyle, due to international promotional initiatives that challenge social variety.
Large international organizations advertise their products worldwide, and there are few countries where the images for Coca-Cola and Nike haven't showed up. The negative effect of global marketing is that local organizations are surrounded out of the market and the international organizations encourage American or Western consumer styles on other societies. In the same way, the junk meals industry encourages principles of production performance. As a result, conventional delicacies appears less cost-effective and successful than junk meals, causing conventional meals sites to lose
Language is a key appearance of social variety. Experts of globalization declare it marginalizes some 'languages' and may even cause some 'languages' to die out. Others say this is a belief. Because the world’s prominent financial systems talk English, it is often seen as the primary root cause to make other 'languages' less essential. Certainly, English is commonly used as a second or third language, and this allow the globalization of company trade; however, if company areas see more advantages in discussing Spanish language or China, they understand those instead.