Globalization: a Closer Look

Topics: United States, Unemployment, United States dollar Pages: 2 (560 words) Published: April 25, 2013
Globalization: A Closer Look

After several decades, General Motors decided to move shop to Mexico. Causing high impact on local culture, huge impact on the United States, thousands of people unemployed and on unemployment. Causing at least two states, Flint Michigan and Mesa, Arizona to lose money in the process.

Global stratification affected the local culture in Flint, Michigan and Mesa, Arizona in a huge way. The negative effects it had on both of the states not counting the other states where General Motors had factories, was that it cost thousands of people their jobs. By GM announcing the move to Mexico to “save money and to be cost efficient”, it eliminated somewhere between 38,000-50,000 jobs. Causing people to lose their homes, moving to different states looking for work, lose their families simply because they cannot keep food on the table. The divorce rate went up because of no work. Unemployment rates went up 9.7% just in Flint alone. In return causing the states of Michigan and Arizona to lose money as well. By General Motors moving their factories to Mexico and leaving huge, empty buildings behind, it is costing the states millions of dollars, as well as empty houses because families are simply up and leaving their homes causing the housing market to go up due to foreclosure’s. The only positive effect that this has made was on General Motors itself. General Motors claims that by moving the company to Mexico it would be cost efficient to the company. Not caring what it does to the American people, and not to mention the United States.

General Motors also caused a huge impact on the United States. General Motors was one of the companies who asked the government to help them with the “bailout”. General Motors took the Americans tax dollars to help boost their company, saying we will not make it if we do not get the help and then decided to move their company to Mexico. Causing Mexico’s stock market to rise 12% and in the process the United...
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