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General Electronics has opened facilities off shore in India to

manufacture products and reintroduce those products back to the
U.S.Why and what has been the long term affects of this move?

User Bedbad
by
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1 Answer

6 votes

Final answer:

General Electronics' offshore operations in India are part of a broader trend of globalization and search for cost reductions, resulting in job losses in the U.S. and higher inequality. Protective measures intended to safeguard U.S. industries have sometimes backfired, leading to further offshoring and plant closures. This represents the complex nature of globalization and its impact on domestic job markets and economies.

Step-by-step explanation:

The decision by General Electronics to open facilities in India and reintroduce their products back to the U.S. is a reflection of the globalization of production processes, seeking to leverage benefits such as cost savings. Such strategic relocation, seen across various U.S.-based manufacturers, is often driven by the desire for cheaper labor and less stringent environmental regulations. Over time, this practice has led to the transfer of manufacturing jobs outside the United States, resulting in significant job loss domestically and contributing to rising levels of inequality in American society.

The emergence of global assembly lines, where international transactions play a critical role in the creation of products, is exemplified by tech giants like Apple, which designs in the United States, manufactures components in peripheral nations, then assembles these products in another country. This global distribution of production stages has been further exacerbated by protective measures such as the imposition of antidumping taxes, which ironically have led to an exodus of manufacturing to foreign shores. Consequently, major corporations like Apple and IBM have moved their manufacturing plants to countries like Ireland and Japan, while shutting down operations or cancelling plans for new plants in the U.S., reinforcing the loss of domestic manufacturing capabilities and employment.

User Shanti
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