American Corporations

The second group of people that are positively affected by globalization and outsourcing is American corporations who either trade or outsource to Southeast Asia. Many U.S. companies outsource to Southeast Asian countries because many of these countries have an abundance of resources. The workers in these countries also work a much lower cost compared to American workers. This saves these companies money which can helps them financially, and can give them the opportunity to open up another factory in a different location. Trading is also important for U.S. companies with Southeast Asia, considering that about $203 billion in goods are traded between the two areas annually (Janowitz, http://www.atimes.com/atimes/Southeast_Asia/GH06Ae02.html, 6 Aug 2005). This is good for companies in America and Southeast Asia because they obtain goods that they need, sell products to earn a profit, and it helps companies exchange ideas on how to be more efficient. Companies like Wal-Mart, Nike, and Coca-Cola have outsourced to Southeast Asian countries like Vietnam and the Philippines. This way they can get cheaper labor which saves the companies a lot of money. Also, these companies save a lot of money on shipping because they have outsourced to Southeast Asian countries so they will be a lot closer to their shipping destinations, which also in turn, saves them money. Overall, American corporations who trade and/or outsource to Southeast Asia are positively affected. (U.S. Chamber of Commerce, http://www.uschamber.com/international/asia/ southeastasia/ asean, Jan 2011)