Globalization in the 21st Century

2008-11-05T09:17:00.001-08:00

Chapter

Human Resources and Job Design

Discussion Questions

1.One would expect that elements of Maslow's needs hierarchy, Herzberg's Dual Factor theory, and Hackman and Oldham's core job characteristics would be contained in the answer.

2.Jobs have been considered "bad" because they are physically dangerous, "dirty," or "noisy"; psychologically repulsive, too mo-notonous; present too great a physical or intellectual challenge; or offend an individual's preferences with regard to general lifestyle or employment. Students should be encouraged not to identify a particular "right" job, but to try to identify precisely what issues relevant to the job appeal to or offend him or her. Note the core job characteristics of Hackman and Oldham: skill variety, job identity in job significance, autonomy, feedback.

3.Again, there is no set answer to this question. The important considerations are:

The changes suggested should address the reasons that the original job was considered "bad"—not merely make the job different.
The changes must be realistic—resources must exist or must be able to be developed that would allow implementation of the suggested job changes.
The student should be encouraged to consider the difference between "production" and "productivity."

4.Jobs that can push the man-machine interface to the limit of man's capacity usually require a high rate of information processing, a high rate and accuracy of physical response, or both. Examples would be found in terms of pilots of high-performance jet or rocket-powered aircraft, crane operators, and a safety monitor for working at a nuclear power station.

5.The student should be encouraged to include Hackman and Oldham's five core job characteristics of skill variety, job identity, job significance, autonomy, and feedback.

6.Job enrichment relates primarily to increasing the cognitive
or intellectual requirements for the job, often by increasing
authority and responsibility.

Job enlargement relates primarily to an increase in the number of tasks to be performed.

Job rotation implies a formal arrangement for job switching among a particular group of workers within a specific set of jobs. Usually the workers are cross-trained on all or most jobs within the set.

Job specialization implies the opposite of job enrichment or job enlargement, where the job becomes narrow and the range of responsibility and authority restricted.

Employee empowerment is the practice of enriching jobs so that employees accept responsibility for a variety of decisions normally associated with staff specialists.

Teams often satisfy empowerment, core job characteristics, and higher level needs.

7.Vertical expansion refers to job enrichment that adds planning and control dimensions to the job; horizontal expansion refers to job enlargement which occurs when tasks of similar skills are added to the existing job.

8.Expanded jobs have workers performing more tasks; they are less specialized; there's more to learn. This may lead to higher accident rates.

9.Ergonomics is the study of human factors, the study of work.
Ergonomics can make work safer, less damaging, by redesign to tools, workspaces, and worker motions.

10.Techniques for methods analysis include: flow diagrams, process charts, activity charts, and operations charts.

11.Constraints on human resource strategy include: product strategy, process strategy, schedules, individual differences, location strategy, and layout strategy.

Ethical Dilemma

McWane Inc. is an interesting company—a repeat polluter, a dangerous workplace, a tough management team, privately held—yet it is a major philanthropic family in Birmingham and is respected for what it has given the city culturally. It also claims to be "cleaning up its act" in response to the terrible publicity it has received over the years. Students should use the Internet to update the 2003–2004 New York Times and The Wall Street Journal articles sourced. This will make for a lively classroom discussion.

(a) A new company nurse at McWane. Should she contact OSHA, quit, force the issue with management? These are usually no-win situations for employees to find themselves in.

(b) A purchase of McWane's products. Do you insist on ethics in your supply chain? This is an issue facing U.S. clothing makers whose factories are in China, Bangladesh, and Vietnam. Public opinion usually forces companies to insist their suppliers follow the same code of ethics they apply internally.

(c) McWane's banker. Do you intrude on your good customer's business ethics or keep your eyes and ears closed, hoping the attorneys and accountants handle the bad press?

(d) A supplier to McWane. Do you tell McWane you will not sell them $10 million in material per month because you don't approve of their ethical treatment of employees and the environment? Are you responsible to your shareholders to make a profit or set standards for ethics?

End-of-Chapter Problems

10.6The important point raised by this question is that actual ratings will depend on both the job and the psychological needs of the individual student. Students should be encouraged to evaluate the degree to which they require each of the psychological components cited by Hackman and Oldham; then to evaluate several jobs.

The following two examples are offered:

10.7

Times are based on those in Solved Problem 10.1. One could make the case that more (or less) overlap is possible between Gas Man #1 and Gas Man #2. Rules may also limit the number of "over the wall" crew allowed. This could change when the Gas Man #2 could start.

10.8

Note: Several operations could also be viewed as Transports.

10.9(a)Activity chart

10.9(b)Activity chart

10.11One way to do this is to divide the parts of the car
between the three people. For example, A can do the wheels and the top. B does the right side and hood, grill and bumper. C does the left side, trunk, and rear grill, lights, and bumper. Notes can be added under that column to give specific instructions and details.

After analysis via a process chart above, encourage student to use some imagination. Additional short elements (open package, open printer tray, etc.) may be appropriate. Some ideas for improved efficiency include: Move printer adjacent to computer, move limited paper storage to a shelf adjacent to the printer; place stapler on the table adjacent to the copier; don't wait for the printed copies, keep working until the printer is finished.

A more aggressive (and expensive) solution is to have a
sophisticated copier that takes the place of the printer (direct
from computer to copier) that does multiple sorted copies and staples them.

10.13An example is below. Individual responses may vary somewhat.

Case Study

THE FLEET THAT WANDERS

Can you imagine an analytical approach to documenting the problems reported by drivers?

We often use this case to explain that not all problems of this nature are behavioral. Indeed, this is a true case designed to show students that, based on what is known about human factors, the situation can be studied analytically. The design methodology for documenting Mr. Southard's case was to put monitors on the truck drivers to provide a record of their cardiovascular activity. Most of the drivers were doing day drives, that is, going and returning on the same day, thus the design called for monitoring a number of trips by each driver over the same routes using both the new and old trucks. In this way, comparisons could be made between

the work required to drive each truck as shown on the records from each driver. Additionally, the steering wheel on each truck was fitted with sensors to record the amount of motion required to control each kind of truck. The hypothesis was that the truck that required more work would also require greater steering wheel movement. The measure of steering wheel movement was used as evidence to validate the work implied by the record of cardiovascular activity.

There were, of course, some difficulties with this design. It was expensive to outfit the trucks and drivers with the monitoring devices. The cooperation of the drivers was needed because the use of the monitors constituted an invasion of privacy. In addition, on longer trips, the cardiovascular sensors needed to be removed before, and reattached after, every break or delivery stop.

Note: This can make for an excellent classroom exercise and discussion.

Video Case Study

HARD ROCK'S HUMAN RESOURCE STRATEGY

There is an 8-minute video, available from Prentice Hall, filmed specifically for this text that can be shown at this time. An edited, 2-minute version of the video also appears on the student DVD in the text.

1.Hard Rock has lower employee turnover than the industry
due to its

thorough screening at hiring
tolerant, even accepting culture of diversity
great benefit package
effective indoctrination and training, empowerment
focus on team work and even outside volunteer work.

2.The human resource department supports the overall theme restaurant strategy (the experience economy concept) by aggressive
screening, including an evaluation of how the employee will contribute to the Hard Rock experience. The human resource department at Hard Rock recognizes that they are responsible for a critical
element in Hard Rock's strategy. So they must recruit and retain the
human capital that is necessary to fulfill that mission and strategy.

3.An automobile assembly line probably allows less opportunity for creativity and individual expression than a waiter or waitress at Hard Rock, although both organizations can probably put motivated well-trained personnel to good use.

4.The job design literature is rich with many improvements that can be made in the traditional assembly line. The Hackman and Oldham core job characteristics can, with a little imagination, be applied to the assembly line. Job rotation can aid Skill Variety;
helping employees see the fruits of their labor in the finished product will help with Job Identity and Job Significance;
providing opportunity for self-direction by adding planning and control tasks to the job can contribute to Autonomy; and Supervisory Feedback is easy for the tuned-in supervisor. All these are further augmented by job enlargement, job enrichment,
Maslow's self-actualization, and Hertzberg's motivators, such as responsibility, the work itself, recognition, advancement, and achievement. And, of course, the hygiene factors of security, status, working conditions, pay, interpersonal relations, supervision, and company policy and administration can all play a positive role in the quality of life on the job/assembly line. Note: Maslow's hierarchy and Hertzberg's dual factors are not discussed in the chapter.

Internet Case Study*

KARSTADT vs JCPENNEY

The case examines the differences in work ethic between a
German department store employee and an American department store employee.

Key Points

Andreas Drauschke and Angie Clark hold positions at similar levels in department stores, and receive similar pay. However, Drauschke, who works in Germany, works far fewer hours than Clark, who works in the U.S.

* This case study is found on our Companion Web site, www.prenhall. com/heizer.

In fact, Drauschke works just 37 hours a week, and receives six weeks vacation each year, while Clark works at least 44 hours
a week, and takes off only a week at a time. Clark notes that Germans see leisure time as being more important than work time.
The difference between the German work style and the American
work style extends in to other areas. For example, turnover at the German store is all but nonexistent, while at the American store it is 40 percent a year. In addition, German employees
receive extensive training, while workers at the American store receive minimal instruction.
Many employees at the American store also have a second job, however Drauschke values his free time, and works no longer than absolutely necessary. His view point is shared by other Germans who fiercely protested the recent mandate that depart-ment stores would stay open one evening each week. Germany also prohibits working second jobs during vacation time.
1.How does the work culture in the United States differ from that in Germany?

Human resource management (HRM) refers to the activities directed at attracting, developing, and maintaining an effective workforce to achieve an organization's objectives. Students will probably conclude that at least in the retailing
industry, American HR managers spend less time both in
recruiting and selecting managers, and preparing them for their jobs than their German counterparts. As a result, turnover is very high in the U.S. as compared to Germany. While the case does not provide information regarding how employees in either country are evaluated, the total compensation package received by Germans seems to be preferable to that which American workers receive.
2.What do you see as the basic advantages and disadvantages of each system?

Most students will probably suggest that the extensive effort that appears to go into selecting and training German workers is a clear advantage of the German system. Students taking this perspective are likely to support their contention by pointing to the high turnover rate in the U.S. as compared to Germany. Many students may see the restriction faced by German workers regarding second jobs as being an intrusion in an individual's private life, and therefore see it as a disadvantage. Finally, most students will probably agree that the compensation package received by German workers is far more likely to improve employee morale than the package
received by American workers.
3.If you were the top operations executive for an international department store chain with stores in both Germany and the United States, what basic issues would you need to address regarding corporate human resource policies?

A primary issue that would have to be addressed is the difference in compensation packages between the U.S. and
Germany. German workers have shorter work weeks and far more vacation time than their American counterparts, yet receive similar pay. A second issue that would have to be
addressed is the difference in worker training and development. German department stores may spend two or three years preparing employees, while American stores might spend just two or three days. Furthermore, recruiting and selection issues would have to be addressed, not only because German employees frequently complete an apprentice program prior to becoming full-time employees, and thus require very careful selection, but also because turnover is much higher in the U.S. than in Germany.

4.Are retailing employee issues different than other industries?

Most students will probably suggest that the issues outlined in question 3 above are probably important in all industries. One area that might be different is the issue of turnover. While turnover is very high in U.S. retailing, it is likely to be less of a problem in industries where workers receive extensive training and/or belong to unions.

5.Under which system would you prefer to work?

Most students will probably suggest that the German work system is preferable than the American work system. Students taking this perspective will probably point out that American workers frequently appear to be stressed out on the job and do not have enough time with family. Other students, however, might object to some of the constraints of the German system, such as the prohibition of second jobs during vacation time. Students taking this perspective are likely to suggest that there should be no limits to working as hard as possible in
order to get ahead.

Additional Case Application

Case question 3 asks students to identify issues that would be faced by an American operations manager who worked for an in-ternational department store chain with branches in both the U.S. and Germany. Students can carry this exercise one step further by holding a round table discussion reading compensation packages. Each student can be assigned to take on the rule of either the American executive, a German worker or an American worker.

Source: R.W. Griffin and M.W. Pustay, International Business 2nd ed. (Reading, MA., Addison-Wesley), 1999. Solution appears on page 347–349 of Instructor's Manual by V. Horton and S.K. Sokoya.

Globalization in the 21st Century

2008-06-18T13:01:00.000-07:00

Globalization is an umbrella term and is perhaps best understood as a unitary process inclusive of many sub-processes (such as enhanced economic interdependence, increased cultural influence, rapid advances of information technology, and novel governance and geopolitical challenges) that are increasingly binding people and the biosphere more tightly into one global system. (From Wikipedia, the free encyclopedia)

According to Wikipedia, Globalization refers to "increasing global connectivity, integration and interdependence in the economic, social, technological, cultural, political, and ecological spheres."

Our English 101 class created a collection of essays that take a look at specific issues and areas of the world as they relate to this topic.

A change in India – Impact of Outsourcing on Indian Economy

2007-06-22T14:07:00.000-07:00

Globalization, just the term says it all. A lot has changed since 1985 especially in the Information Systems field. There have been many inventions. New and improved technologies have entered our lives to make it easier for us to live this complicated world. Let’s take computer for example, a machine that enables information to be processed in a revolutionary manner in terms of speed, storage, access, analysis, and geographical distribution.(Nolan, p. 61) It was as big as a room when it was created and now within just couple years, there are computer assisted surgeries, computer assisted phone, computer – watch, etc.. The development of computers first influenced the lower levels of traditional organizations and more recently, had influenced the middle levels or organizations. Technology makes markets vastly more efficient. It is a huge accomplishment especially for a developing country like India. With that being said, the whole point of this paper is to see the impact of globalization through the means of outsourcing in software field on Indian Economy.
In the past two decades, India’s IT and software industry has climbed to the pinnacle to being the world’s top technically advanced country to compete with other superpowers like Japan, China and USA. With the status of India rising from the typical third world country, to a more recognizably techno-savvy state, its influence has turned to other developing economies and countries, to inspire them.
To compete in a global economy requires an organization that is managed ion a global basis. Global management entails balancing the general and universal with the specific and particular. (Bradley, p. 57) India has proved to the World that if given a chance, industrialism can do wonders for a country where at one point the software industry was non-existent. Now India is one of the largest employers in manufacturing. India has taken the center stage, and from delivering products and services on a global competitive scale, it has reached a proud status of being called a technological powerhouse.

Bradley, Stephen P, Jerry A. Housman and Richard L. Nolan. Globalization, Technology, and Competition – The Fusion of Computers and Telecommunications in the 1990. Boston, Massachusetts: Harvard Business School Press, 1993

Globalization:Its Negative Effects on LDCs (Less Developed Countries) and What the West has to Offer as a Solution.

2007-06-21T10:18:00.000-07:00

Since its introduction to the English vocabulary in the 1980s the word Globalization has been a debated issue. For many Globalization is the ongoing process of greater economic, political and social interdependence among countries and their citizens and is complex and multifaceted¹. Yet this definition is deceptive and too simple for any one especially from a third world nation to accept; for they have experienced the excruciating side effects of Globalization first hand. Globalization in the less developed countries is a concept benefiting the well developed countries while aiming its disadvantages on the less developed part of the world. In his article “Globalization: For whom and for what” Robert C. Dash explains-

Globalization is too often little more than an ideological incantation to the triumphalism surrounding capitalist expansion on a world scale – a neoliberal apology by another name[1]. (Fall 1998. P 52)

Less developed countries are facing poverty, Economical stagnancy or decline, income inequality, food insecurity and lack of welfare as a result of the negative effects of Globalization and so the western society (developed countries), the ones benefiting from Globalization, should put forward some long term solutions. They should try to amend what the LDCs (less developed countries) are losing as a result of a system they had created. But before stating what the west should do it is necessary to connect the problems raised to the effects of Globalization.

[1] Dash, Robert. “Globalization: For Whom and for What.” Latin American Perspective 25:6 (Fall 1998):52-54 (p. 52)

Read the rest>>

Measuring Globalization

2007-06-20T13:57:00.000-07:00

There is a certainly a multitude of ways to measure globalization on a worldwide spectrum. There are also many ways to describe and break-down globalization. One author stated “that the rapid increase in cross-border economic, social, technological and cultural exchange is civilizing and promises boundless prosperity and consumer joy” (Guillen 235). Certain trends emerge from every country and some do better than others. The Foreign Policy magazine has “created an index that measures a country's global links, from foreign direct investment to international travel. For the last two years, Singapore and Ireland have topped our ranking of political, economic, and technological integration in 62 countries” (Kearney 2003, 60). They have done a very thorough report and one can clearly see why nations like Ireland and Singapore do so well in terms of globalization.

The 21st century way to measure globalization definitely seems to be based heavily on technology. The percentage of a countries population with internet access is now a telling factor of how global that nation is. To put it a different way, “technology has become the engine of globalization” (Kearney 2001, 57). Denmark, Norway, Finland, and Sweden all have populations less than 10 million but all rank very high in the technological aspect of globalization. This is largely because the number of online users and secure internet servers in these countries goes up every day. The United States is the overall leader in the technological category but with a population of around 300 million, that is not hard to understand why. Still though, smaller nations are catching up every day and in 10 years, they might take the lead, even though they have far less the amount of people.

Guillen, Mauro F. “Is Globalization Civilizing, Destructive or Feeble?” Annual
Review of Sociology © 2001 Annual Reviews. JSTOR. 16 July 2007.

Kearney, A. T. “Measuring Globalization: Globalization at Work”
Foreign Policy, No. 122. (Jan. - Feb., 2001) P.56-65. JSTOR. 04 June 2007.

Outsourcing American Jobs

2007-06-20T13:24:00.000-07:00

Outsourcing, high-tech jobs to low-cost countries, seems beneficial for the U.S. economy, but it is, in reality, damaging our economy like termites weaken a house. In 2003, more than half of Fortune 500 countries were outsourcing software-development jobs to overseas, causing numerous layoffs in the U.S.
Read More

MS 13: A Growing Global Disease

2007-06-20T13:12:00.000-07:00

In 1980’s approximately 100,000 Salvadorians migrated to the

United Sates as refugees escaping from the Civil War. As a result

of this, MS-13, which is the abbreviation for Mara Salvatrucha,

was formed in Los Angeles, California. It is believed the name

was obtained from combining the name “La Mara,” a violent

street in El Salvador, and the word Salvatruchas, which was a

term used to address members of the Farabundo Marti

National Liberation Front (FMNL) during the Civil War. The

FMNL was a group of Salvadorian peasants trained as rebel

fighters. The number “13” was added as result of the 13th

street in Los Angeles (Feur 4, Valdez 1 &Gang Resources 1).

Ever since, this gang has grown rapidly throughout the

United States and has expanded to different countries in Latin

America. Its international growth categorizes this gang as

a global issue; the strategies for preventing this gang from

growing should focus on schools offering mentors and

after school programs.
read more

Alleviating the Burden on the Lower Income Bracket: Undesirable and Unintended Consequences of Minimum Wage Policy in the United States

2007-06-20T13:06:00.000-07:00

By Patrick Yoon

Introduction

In the beginning of the 21st Century, everything costs more due to the rapid process of globalization: gas prices are higher, tuition prices are higher, medical costs are higher, just to name a few. Meanwhile, the income of minimum-wage earners remains stuck at a level that was barely even adequate when it was set ten years ago. Just to reiterate a previously stated point – since 1997, the buying power of the minimum wage has dwindled by 20 percent to its lowest inflation-adjusted value in over fifty years (Fox 1-2). It is an implied understanding that a wage increase would increase the average wages of low-income earners without causing significant effects in the amount of unemployment.

However, politicians looking to aid Americans in the lower income brackets most often evoke the minimum wage debate. The most commonly used argument against raising the minimum wage rests on the basic rules of supply and demand. Theoretically, an ideal equilibrium exists in the relationship between X – the quantity of goods offered, and Y – the price the goods are sold for, where the relationship is most efficient because the quantity of goods offered equals the quantity of goods demanded. Replacing X and Y with workers and wages, respectively, would then raise a valid question. The law of demand affirms that the higher the price of a good, or wage of a worker, the less employers will desire that commodity. Correspondingly, the law of supply asserts that the higher the wage, the more the workers would be willing to work for that wage. Consequently, it can be reasoned that by holding the minimum wage price floor above market equilibrium, employers will hire fewer employees, thereby increasing the unemployment rate. This, ironically, undermines the desired effect of a wage increase. While the workers receiving minimum wage might be paid more, there will be less of those workers. The responsible solution is to set the minimum wage floor at the equilibrium point; not using it to regulate the market, but rather to protect those in danger of being paid unfair salaries.

Why Not Appropriate
Branching off this argument is the additional problem that with the pressure of paying suddenly increased wages, employers may decide, or have no choice, but to decrease spending in other areas. Economists delight in stressing the limited nature of resources with regard to the minimum wage problem. On average, firms can only afford to pay so much on a fixed budget; a wage increase cannot happen with a reciprocal decrease elsewhere (Gorman 5). Often, low-wage earners profit from many other fringe benefits included in their compensatory packages, including but not limited to paid vacation, free room and board, inexpensive health insurance, subsidized child care, employee discounts, uniforms, credit toward college tuition, and on-the-job training (OJT). Especially in the case of low-income single mothers (constituting a substantial percentage of low-wage earners), being able to work is oftentimes contingent on those benefits such as child-care and room and board. In one scenario, full-time minimum wage jobs with many needed benefits would be reduced to slightly higher paying part-time jobs with reduced benefits and fewer hours. Or, in an equally undesirable scenario, employers will be forced to reduce their number of employees to pay at the higher rate. One added effect would be the remaining employees having to absorb the responsibilities of their fired, or as the case may be not-hired, counterparts. Furthermore, to maintain sustainability of employee numbers and benefits, firms will be forced to pass higher costs of production onto consumers, resulting in an increase in inflation.

The importance of on-the-job training should also be considered. A large number of minimum-wage workers have little experience and require training to be able to fulfill their job responsibilities. Hand-in-hand with training comes the likelihood of being better prepared for future, possibly higher-paying, job opportunities. According to the Library of Economics and Liberty, data from the 1967-68 U.S. minimum-wage hike (a 28% increase) was shown to reduce the value of on-the-job training by 2.7 - 15% (Furman 3).

Fringe benefits are not subject to payroll and income taxes, therefore it could be said that a $1 value in benefits is equivalent to $1.25 or more in direct wages. According to the NCPA, fringe benefits constitute on average 30% of overall job compensation; these benefits are received by one in three minimum or near minimum-wage earners (Goodman 6). When previous federal minimum wage increases were analyzed, it was concluded that a 20% increase in the minimum wage resulted in a 4% decrease in health insurance provided by the employers (Goodman 5). This has wide-reaching implications when considering the number of individuals below the poverty line nationwide who also lack important benefits, such as the 27% without health insurance (the U.S Census Bureau 2).

Also imperative is the shift of more and more domestic American industries towards outsourcing much of their labor. Today this shift not only encompasses menial assembly tasks, but even consulting and technical support positions. While some of this outsourcing is occurring to develop an international presence and proximity to developing markets, the vast majority is happening to take advantage of a vast international supply of cheap labor (the U.S Department of Labor 3). The limits of this paper alone are too finite to divulge into international trade relations and international worker standards. However, in the United States, workers are afforded a great luxury in pay standard and numerous federally required benefits. The expense of the aforementioned can grow exacerbated as minimum wage increases, causing many domestic firms to reconsider where in the world their low-wage tasks are performed. Creating a minimum wage too high on the international scale can have adverse effects on the American job market as more and more firms move overseas in favor of lower costs of production and higher profit margins.

It is furthermore important to understand that depending on the geographic region and sector, a wage increase will have different effects (IRS 4). In large cities where workers tend to earn more, a wage increase might have insignificant effects. However, in a rural area where the new wage substantially exceeds the prevailing wage, it will inevitably cause greater unemployment. Studies have demonstrated that for such rural areas characterized by lower wages, a substantial increase in the minimum wage can shrink industries and impede job creation. When considered more broadly, this might yet have implications on even bigger societal issues, such as increasing the social and economic gap between industrialized cities and fringe rural areas (EPI 3).

A study conducted by Sara Lemos in 2005 examined minimum wage, price, and employment effects in association with poverty alleviation. Using Brazilian monthly household and firm panel data between the years of 1982 and 2000, a general wage-price inflationary spiral was exhibited, where persistent inflation counteracted wage gains. Her principal finding established that raising the minimum wage raised both wages and prices to negative effects in employment (Lemos 12). Essentially the study found that the potential for the minimum wage to aid the poor (the primary argument for raising the minimum wage) is dependent on low inflation rates. Although the study was conducted in Brazil, these results still have implications for how minimum wage raises should be considered in an inflationary America, namely, how likely is it that the U.S might fall into a similar wage-price inflationary spiral.

Finally, the problems with the minimum wage policy can be condensed into two main downsides: 1) The potential to increase unemployment and 2) Inefficient distribution to those in need. Firstly, according to the traditional economic supply and demand model, by increasing the minimum wage (price of labor) the demand (quantity) for labor decreases, which results in unemployment. Therefore, the immediate, short-run benefits of the $2.10 increase in the wage will not last in the long run because there is a greater chance of being laid off due to a decrease in demand for labor at the higher cost. Secondly, according to economists, the minimum wage policy is an inefficient way to target low-income workers because an increase in the minimum wage not only affects workers from low-income households, but it affects the entire spectrum of income distribution. Since many of the workers earning minimum wage are not from the low-income bracket (i.e. teenagers, part-time workers, etc.), the minimum wage is not an efficient policy to help directly alleviate the burdens of the low-income households. In addition, the minimum wage increase might result in a parallel increase in the prices of goods that are made by companies who employ minimum wage workers because of the increase in production costs, thus contributing to inflation in the long run.

Alternative Policies
The Earned Income Tax Credit was created in 1975 on a bipartisan basis, to help offset Social Security taxes for low-income workers. Since that time, it has grown to be one of the country's most successful anti-poverty programs (IRS 1). Research shows that a 10 percent increase in the maximum EITC refundable credit reduces poverty rates by 7 percent among full- time employed single moms (Henry Paulson, Treasury Department Briefing). The EITC affects many of the same actors that increasing the minimum wage does, but it impacts the U.S. government to a much greater degree. Increasing EITC programs reduce government revenue that could be used to help working class families in the form of social welfare programs.

Similar to the minimum wage policy, the alternate EITC policy is also receiving a great deal of support. The EITC is a “refundable federal income tax credit for low-income working individuals and families” (Internal Revenue Service 3). Many economists and policy analysts favor the EITC because of the “tax credit’s more precise targeting of beneficiaries [low-income households] and lack of market interference” (Bernstein 8). The EITC is a more efficient policy than the minimum wage at targeting low-income households because it is based on family income and not wage levels of a single, possibly supplementary worker. Therefore, under the EITC, low-wage workers in higher-income families would not qualify for the tax refund; hence, this policy would get rid of that particular dead-weight loss.

Conclusive Thoughts
Based on the above arguments, the best policy is to incorporate a balance of both the minimum wage and the EITC to help alleviate the burden of low-income households. Both the minimum wage and the EITC are important policies that should be implemented to work in tandem. While the EITC is an integral component to alleviating the burden on the lowest-income bracket, it is impossible to provide infinite tax credits on a salary of limited scope. Because minimum wage does not automatically adjust for inflation, it is important to package it with the EITC, a policy that does. Without the regular increase in the minimum wage, the “EITC alone is not enough to keep a family above the poverty line, and a minimum wage worker gets further away from the poverty line each year the minimum wage is not increased” (Bernstein 9). Therefore, the minimum wage needs to be increased on a regular basis and enacted in congruence with an intrinsically inflation-adjusted program to account for fluctuations in the cost of living and inflation.

It should furthermore be noted that a minimum wage increase most negatively affects the small firms and companies that have to conform to and compensate for these additional expenses by sacrificing in other areas that are just as beneficial to low-wage workers as a wage increase would be (i.e. health insurance). Thus, as a modification to this policy, it would be necessary to provide tax breaks to these small companies as an incentive for keeping all other relevant factors and benefits equal, and just increasing what is needed – the long dormant minimum wage.

Works Cited
Bernstein, Jared and Elaine Maag. “Tax Credits or Minimum Wages? We Need Both.”Economic Policy Institute. 15 Mar. 2007. 7 April 2007
http://www.epi.org/content.cfm/webfeatures_viewpoints_minwg_eic
Bernstein, Jared and Isaac Shapiro. “Nine Years of Neglect: Federal Minimum Wage Remains Unchanged for Ninth Straight Year, Falls to Lowest Level in More than Half a Century.” Economic Policy Institute. 31 Aug. 2006. 23 Feb. 2007
http://www.epinet.org/issuebriefs/227/ib227.pdf.
“Characteristics of Minimum Wage Workers: 2006” 2 Mar. 2007. U.S. Department of Labor: Bureau of Labor Statistics.15. Apr. 2007.
http://www.bls.gov/cps/minwage2006.htm
“Earned Income Tax Credit (EITC) Questions and Answers.” Internal Revenue Service: United States Department of the Treasury http://www.irs.gov/individuals/article/0,,id=96466,00.html#QA1.
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How The Cowboy [United States] Could Change Its Economic Mission

2007-06-20T12:56:00.000-07:00

Textile Industry, High-tech industries are just some industries that China has taken over in the past and even in the present. The American mission was always a puritan mission because of the development of the Puritan Mission which was derived from not only the protestant reformation as well as the separatists^¹. But now the American mission is to become the world’s superpower. Five hundred years ago, China dominated Asia as the world’s most advanced superpower. Now, with a growing economy and a young population, the nation is again rising to superpower status-with the U.S. as nemesis. The booming country is growing at an annual rate of approximately 7 percent per year while the US struggles to grow at 3 to 4 percent.^² China should pass the US in economic strength in anywhere from 25 to 50 years. China even has a trade surplus of roughly $40 billion while the US drowns under a $500 billion trade deficit. That is why it is necessary for the United States to reconsider some of their economical decisions in order to become stronger. Some ways the United States could change its Economical policy in the 21^st century to become a stronger country like China.

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Democratic Globalization

2007-06-20T12:53:00.001-07:00

Democratic Globalization
David Knoche

Democracy can be a force for good. It can deliver the fate of a country into its own people’s hands. However, the notion that Democracy will solve the world’s problems is an erroneous belief. Democracy is not perfect. It is not the ideal form of government for every group of people; some people would prefer to have a monarchy or other form of government. In addition, a government’s claim to be democratic does not automatically make that government just. The fact is that globalization of democracy is not necessarily a good thing.

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Deforestation: A look into the Brazilian Rainforest

2007-06-20T12:49:00.000-07:00

Introduction

This paper explores the relationship between globalization and deforestation in the Brazilian rainforest. An overview of recent studies will show the effects of deforestation in the Amazon. Trends reviewed include arguments for conservation in the rainforest, and arguments for economic growth and development. However, the evidence suggests devastating consequences on what is the largest and most complex ecosystem in the world.

Botswana’s Elephant Population: A Rising Number that has become a Problem both Socially and Economically

2007-06-20T12:43:00.000-07:00

Although 25 years (1970-1995) of poaching seriously reduced elephant numbers in portions of Central and East Africa, it was reported in 2002 that populations throughout Africa estimated at more than 600,000. This shows that elephants are not endangered, or even threatened (Coogan 51). Despite these numbers, the African elephant is still on the endangered species list. Elephant hunting is currently allowed in Botswana and other South African countries. Botswana proposed an elephant management plan in 1991 in order to assure that the devastation of this species would not occur again. Their plan to stop the extinction of African elephants has been successful, but the unforeseen problems due to overpopulation have arisen.

The Overwhelming Need for Change: An Exploration of the Problem of Globalization on the Engineering Profession

2007-06-20T12:42:00.001-07:00

Since the advent of the globalized world, business has been taking advantage of cheap labor and cheap materials, and of ways to turn a greater profit by buying low and selling high. In the past, this was restricted to material goods, with tea coming from China, tobacco from Virginia, and so on. As the world progressed into the 20th century, globalization went beyond material goods and began to extend into the realm of the normal man's career. Looking back, we can already see the results of the Japanese car industry, a result of the globalization of the manufacturing industry and a failure of the US manufacturing industry to keep up with the competition. By now, many people swear by Japanese cars, while some other people simply swear at their American vehicles.

Chinese Law’s Need for Self-Consciousness and Renewal

2007-06-20T12:29:00.001-07:00

Globalization has improved China’s relationship with the U.S. Due to Chinese openness to American investments on their economy, and their outdated legal system, their policy has sought to “adopt a new rule of law” (Lin-Liu 42). As a result, China encourages Temple University to offer a law degree in China hosted by Tsinghai University. This essay exams the Chinese need to reform the legal system’s incompatibilities with its current economy, such as incomprehensibility, insufficiency, and its bureaucratic behaviors, and the United States training for Chinese lawyers to update its legal system for global economic goals.

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Slide Show
Video links
Law in China P1
Law in China part 2
US-China Trade Policy: Is China Winning The Money War?
China Delivers US $10 Billion Deal: Hush $$$ For Critics?
Books
China's Economic Transformation
Understanding China's Legal System
"Competition Policy and Law in China, Hong Kong and Taiwan"

Hatred Seen Positively: British View of American Culture in the movie 10 Things I Hate About You

2007-06-20T12:25:00.001-07:00

Using Globalization as one point we can see how the movie shows the infusion of cultures during the twenty first century. Using reviews, books, and articles I will be able to deduce that British youth is more globalized. I can do this by using their opinion in the reviews, scholars’ analysis of youth in comparison to the influence of media and internet. 10 Things I Hate about You has a twist off of Shakespeare’s play The Taming of the Shrew. This adaptation to the twenty first century’s culture of globalization enables others to see more similarities than differences between Brits and Americans. I also have researched Classic British Films and the qualities that make them as such. This will help to draw a comparison between their qualities and the qualities reviewers see in the movie.
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