Economic Interactions and Flows

Outsourcing is one of the methods to raise up the economic flow in globalization era. Outsourcing means  from the definition from Green Geography Site "Outsourcing refers to contracting work out to an external organization". Although outsourcing gives several benefits to a country but it requires a lot of risks which leads to negative consequences. First of all, benefits of outsourcing is cost advantage, companies deal to buy a products from 3rd class company with buying cheaper price. Second benefit is Focus on core competency, when a company uses outsourcing, it doesn't have to care the secondary product because it's handled by 3rd class company, and the main company is able to focus on its main product. Quality and capability, since the company focuses on its core product, the quality will be better than companies that don't use outsourcing technique. Last benefit of outsourcing is labor flexibility, when a company uses outsourcing, it takes a lot of workers because it needs to be done within 6~8 months, however, outsourcing provides flexibility so it doesn't have to worry about hiring and firing. However, the risks of outsourcing are wrong workers chosen who are not interested in the job, lack of knowledge, and sometimes relying to much on third class company which will lead to bad quality of a product. Among all, my question is, is it possible for third class company to get products from another third class company?

Problem of ASEAN in politic

What is ASEAN? 

ASEAN is a short term for Association of Southeast Asian Nations. ASEAN is a political and economic society of ten countries in Southeast Asia. It was formed on August 8, 1967. It started from 5 countries which are Indonesia, Malaysia, Philippines, Singapore and Thailand. Then they expanded with Brunei, Burma, Cambodia, Laos. Their main aim was to develop economic growth, social progress, peace, etc. however nowadays ASEAN organization is facing some difficulties and erratic problems.

One of the problem is shown in the article titled:

"ASEAN’s problems on display at Bali summit"

The conference was held in Bali Indonesia. The purpose of this meeting was to date the reduction of tariff from eleven different areas of profit which are tourism, electronic products, etc. to 2020. However not all countries agreed with it because Singapore prime minister Goh Chok and Thai prime minister Thakshin argued that 2020 will be too late because by then using this plan to develop economic rate will be irrelevant because from the past years the in 2001 ASEAN only gained 1.7% of profit due to several economic crisis and other economic problems.  However the prime minister from the agreeing side gave a rebuttal why it should happen in 2020 so the argument went on for a long time. 

My thought: From reading this article, I figured out that ASEAN is not like a UN which if one countries disagrees with it then the entire countries should disagree also. Because ASEAN system is like a debate, it's impossible to be peaceful. I also think that by having argument with such important decision, although it will be fair but some countries will lose their remaining profit and also they are using high risk. In the future, I believe some members of ASEAN will drop out because of several argument which will lead to loss of sovereignty.  

Cultural Diffusion

One example of cultural diffusion in my country(Korea) is spread of smartphones. Korea is famous for having numerous electrical devices. Such corporations are Samsung, LG. After iPhone was released from Apple, Samsung took ideas from them and made smartphone with different design and better processor. In Korea, people thought there will be competition between Apple and Samsung. However, after few months, LG made a smartphone which was extremely cheap but same processor with Samsung, then Samsung came up with the better smartphone called Galaxy S2 which blow up people's mind, then LG made G1 which was again cheaper but same process. After all, through rivalry between two Korean companies, their products are competing with other smartphone companies around the world.

Pros and Cons about Globalization

GLOBALIZATION

  Pros                                                     Cons

The proponent of global free trade say globalization promotes most effective global economic growth, creates jobs, makes competition among companies.	The general complaint is that globalization had made rich richer and non-rich poorer.
Because of globalization there are worldwide market for companies and consumers to access products from different countries.	Multinational corporations are accused of social injustice, unfair working conditions as well as poor environment, mismanagement, ecological damage.
There is more influx of information between companies from different countries	Many people are worried that corporation are ruling the world because they gain power through globalization.
Through globalization, each countries can share their cultures.	Anti-globalists claim that globalization makes companies to earn money without using enough efforts.
Because of globalization, people who works internationally will not be considered as aliens.	Anti-globalists also claims that globalization is not working for majority of the world, riches 20% of the world’s population consume 86% of world’s resources and poorest 80% consume just 14%.