Critical response Essay Example | Topics and Well Written Essays - 750 words

Critical response - Essay ExampleAfter staying in the background for decades, both countries atomic number 18 now open to business with America and have added their low-cost pains forces into the demesnes labor pool, not only dramatically decreasing wages of Americans tho in fact pushing many of them out of employment.American companies are forced to hire cheap opposed labor to remain favorable in terms of dividends and thus competitive for their shareholders. I f they do not, their dividends will remain low and stockholders will compare them to companies with low costs. The interesting fact is that these stock holders are not just huge corporate giants but average Americans as well. The American middle track has become an army of investors whose tough demands are translating into more than layoffs among their witness ranks (Meredith 2007 193.2). In the short term this benefits investors but in the long run loss of jobs makes them worse off.Another interesting phenomena parad ox is the Walmart culture (Meredith 2007 191.3). Walmat stocks galore(postnominal) supply of cheap Chinese and India goods that benefits average consumers by giving them extremely low prices and a racy range of products. So where Americans are being laid off as high cost factories in America shut down, they are at the same time benefitting as consumers.The reading points out that patch the globalized era is posing to be a huge threat, it is at the same time bringing scores of benefits. Trade with china keeps down interest rates and inflation in America. Chinese Government has the worlds largest dollar reserves which it buys in US treasury bonds in order to keep its own exchange rate stable (Meredith 2007 194.2). Demand for bonds raises their prices and forces interest rates to remain low due to their ban relationship. This has led to average Americans to enjoy lower amounts of credit and a larger affordability for loan, enabling them to buy houses more often than before.China