How global stratification impacts local culture
Global stratification is considered as the hierarchical arrangement of citizens or groups of people in society all over the world. An example of global stratification is in the United States where there many poor people but there are still people that have better standards of living. Global stratification associates wealth, economic steadiness, position, and power of nations globally (Salem, 2014). The positive idea about sourcing using multinational firms such as Coca Cola is that the company is that it gives so many individuals in the developing countries job opportunities. Considerably there are so many people from foreign nations that depend on on these job opportunities to boost their living standards and that of their family. Thus, outsourcing would boost the living standards of the developing and undeveloped countries (Pongelli, Calabrò, and Basco, 2019).
Additionally, multinational companies such as Adidas and Nike have sufficiently introduced trendy shoes and clothes in these cultures. If the country is a lowly individualized country, their living standards are usually low. The economic vulnerability of the United States is high. Standards of living in industrial nations are high. Some of the positive effects include the cost of goods are lowered thus increasing the trades and help in leveling up the social class.
However, the major setbacks that are linked with the global stratification in the developed and developed countries include the general economy. Considerably, the general economy of these countries is growing slowly while in other countries it never improves. This means that global stratification does not boost the overall wealth of developing countries since they are still a third world country which is low as compared to the rest of the universal standard (Fehl and Freistein, 2020). The citizen’s lives are suppressed due to lack of resources and exploitation of resources. Multinational companies can relocate into the countries where the taxes are low but they find that the clothes and shoes hold great taxes to the citizens thus influence their purchasing power.
Global Stratification Impact in the United States
The classification of global stratification has placed the United States among the wealthiest nations worldwide. Ideally, as one of the leading nations in information technology and high finance, the U.S has gained a lot from progressive influences of global stratification. The United States has enjoyed subsidized infrastructure, tax breaks, labor as well as environmental regulations while establishing multinational corporations in less developed countries which boosts their economic growth and development.
For instance, a company such as Nike holds various design patents in emerging countries which have hugely boosted the United States. This has also allowed the firms and their mother states to gain a domination in the local economy thus hindering other enterprises from developing. Additionally, the monopoly allows economic growth, better access to raw materials, and have better living standards. However, this has also led to rivalry between the United States and other wealthy countries that scramble for raw materials and production due to the increased number of industries.
Multinational corporations are the greatest winners of global stratification. Companies such as Nike and Adidas are from a most industrialized nation which has exploited the less developed nations politically and economically. Multinational corporations have been able to maintain the universal dominance of industrialized states through conducting business perpetuating global stratification (Epstein, 2019). Ideally, the multinational corporations use capital from developed nations and establish plants and factories in developing countries where they can acquire labor and raw materials cheaply. They have been able to link between different economies of various nations to boost GDP growth and living standards.
The ability to conduct business in different countries means having the capacity to capitalized on cheap low materials and labor. For instance, multinational corporations have been able to make access to low production costs, targeting international markets and establishing production in other nations. Multinational corporations can also rely on their structure to establish a monopolistic market (Fehl and Freistein, 2020). Additionally, through monopolization, the multinational corporations have interrupted local innovations and these ultimately influence the lifestyle and livelihood of the local people who tend to stagnate in poverty.
There negative and positive effects of global stratification that impact the local culture. Ideally, it influences the local culture depending on the wealth of the nation as well as the living status. The negative and positive effects that impact global stratification in the United States include more businesses in the country that produce goods and export the goods and gain in foreign exchange which help in gaining dollars. Some of the negative effects are that many citizens are laid off from their job in case the company relocates. This means that the rate of unemployment goes up in the country which means that the citizens of the country are losing their jobs and are not able to sustain themselves. Ideally, the biggest winners, in this case, is the company since they are always looking to boost their profit which is the reason why they may decide to relocate into another country where they have a larger market.
Fehl, C., & Freistein, K. (2020). Organizing Global Stratification: How International Organisations (Re) produce Inequalities in International Society. Global Society, 34(3), 285-303.
Salem, P. (2014). Global Stratification and Development; Sociology Reference Guide. Salem Press, Incorporated
Pongelli, C., Calabrò, A., & Basco, R. (2019). Family firms’ international make-or-buy decisions: Captive offshoring, offshore outsourcing, and the role of home region focus. Journal of Business Research, 103, 596-606.
Epstein, G. (2019). The role and control of multinational corporations in the world economy. In The handbook of globalization, third edition. Edward Elgar Publishing.
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