Big US Firms Shifting Hiring Abroad (Article Critique Sample)

Big US Firms Shifting Hiring Abroad [Author Name(s), First M. Last, Omit Titles and Degrees] [Institutional Affiliation(s)] Author Note [Include any grant/funding information and a complete correspondence address.] Big US Firms Shifting Hiring Abroad The 19th April 2011 article, "Big US Firms Shifting Hiring Abroad" in The Wall Street Journal, shows that globalization of multinational corporations is causing loss and decline of job creation in the United States. The article demonstrates that globalization is causing unemployment in the United States. The article blames the government for the negative impact of globalization on the country. The article claims county's poor trade policies, expensive tax system, Infrastructural decline, poor immigration policies, poor education system and aggressive foreign governments as the reasons behind its claim that the United States is feeling a negative pinch of globalization. The article bases its claim and supports the claim using US Commerce department data CITATION Wes11 \l 1033 (Wessel, 2011). This source of data is trusted and reliable source. This paper explores the claim of the article (globalization is causing unemployment in the United States) and tries to determine whether the reasons behind such a claim are genuine or not. It is a fact that the majority of major US multinationals have increased hiring abroad while they have decreased hiring at home. Walmart Stores, Caterpillar Inc., General Electric Co., Apple Inc., Nike, Lenovo, Foxconn, FedEx, UPS, G4S, IBM, and Sodexo are all outsourcing for labor. These companies have created jobs abroad especially in their manufacturing plants and service points which have increased in number in the recent years. Increase in expansion abroad definitely implies increase in jobs or people hired by these companies abroad CITATION Pea12 \l 1033 (Pearlstein, 2012). The article states that the infrastructure in the US is on a decline and is pushing Multinational Corporations away from the country. This is echoed by the American Society of Civil Engineers. A greater portion of the current US infrastructure is in need of repair. The US has experienced economic boom in the last 50yrs due to well-developed infrastructure. However, the recent past, the US has experienced declining infrastructural state this could be driving Multinational corporations away. The movement of goods and services is becoming difficult. Emerging economies are coming up with modern infrastructural facilities that are superior to the US. Countries in Asia such as China, India, United Arab Emirates and Qatar are developing modern, high tech infrastructural facilities that are luring multinational corporations away from the US. CITATION Gol15 \l 1033 (Golson, 2015). Decline in productivity of the US education system has also been stated as a cause decline of employment of US citizens by multinational corporations. The US education system is generally productive. However, social changes are being experienced in US where by young US citizens are increasing in preference of Art over Science and Technology. This has led the US generally, and not merely multinational corporations only, to import technical labor to meet the deficit not provided by the Native Americans. This importation of labor occurs in the form of green cards. Majority of jobs requiring major expertise in the US are increasingly being filled by non-US citizens not only in major corporations but also in other various sectors of the economy. The article reveals that multinational corporations' growth is spurred by huge investments in Research and Development which they still do carry in the US. Surprisingly, majority of the personnel for Research and Development are hired abroad CITATION Ler \l 1033 (Lerman & Schimdt, n.d.). Foreign countries have also been recognized for their aggressive investment incentives which lure multinational corporations to their countries. This is a fact. The developing countries are aware that direct financial investments can spur economic growth in their countries to the desired level. These multinationals are attracted by huge tax breaks and minimum regulation in developing countries. These countries are overlooking social and environmental issues in their pursuit of economic growth and development. Multinationals are exploiting this mark of desperation by increasing their operations in developing countries. However, it is not right to criticize the US of lack of aggressive investment incentives CITATION Wes11 \l 1033 (Wessel, 2011). Economic development goes hand in hand with businesses adhering to their social responsibility. This is the reason why in the recent past, developing countries have realized economic growth but have made very negligible strides in economic development. Additionally, the US has been aggressive in it investment incentives. Following the financial crisis, the US government bailed out a lot of its Multinational corporations and developed a lot of policies and programs such as the Troubled Asset Relief Program. These measures prevented loss of jobs and created a lot of jobs within the US CITATION Rey13 \l 1033 (Reyes, 2013). The article reveals that majority of these multinational corporations are claiming that even though they have increased hiring abroad, it is not because they are in search of cheap labor. They claim that they do hire abroad because that is where their markets exist. This reason is logical. Their branches abroad need to have a local appeal. That is achieved through hiring abroad CITATION Wes11 \l 1033 (Wessel, 2011). However, they cannot deny that availability of cheap labor is a major incentive for hiring abroad. Immigrants and workers in foreign developing countries are always willing to work at lower wages than those offered to and accepted by US citizens. Therefore, these companies in their efforts to maximize competitive advantage and increase profits, they are preferring labor from abroad to labor within the US CITATION Pea12 \l 1033 (Pearlstein, 2012). The article has expressed its claim by majorly blaming the US government, its policies and systems as the reason for US's multinational corporations increasing hiring abroad. However, it has overlooked at other external factors that could be causing this trend in the United States. Such factors are discussed below. Initially, majority of businesses in the US were family owned. These family owners had close personal relationships with their neighbors and workers. This made them pause when it came to sourcing labor from elsewhere even at the expense of making more profit. In the recent past, corporate takeovers have increased. Majority of business are no longer family owned. In their efforts to keep up with competition and prevent take...