What you believe are the greatest challenges to US businesse

What you believe are the greatest challenges to U.S businesses with respect to Globalization? Should US businesses view globalization as a negative or positive influence? Provide support for your responses to both questions.

Solution

Globalization has caused significant disruption to the trade balance in the United States. One of the major challenges posed by globalization to the US trade is increased imports, especially from China. This has led to a substantial burden on the manufacturing sector employment i.e. loss of jobs in the sector. Another problem is for the companies outsourcing contractual work out of the US. When these companies outsource specific work, these companies have to face extraction of their IP through joint venture agreements. Thirdly, companies with multinational setups have to pay huge sums in form of taxes to governments of countries where the operations of the US businesses are established.

Globalization has a diverse impact on the US trade. Its influence has had mixed effects on the trade balance in the US. The biggest advantage has been that the companies from advanced economies have optimally exploited differences in cost of labor and other resources from the emerging economies.