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Chapter 1: Why Study Intercultural Communication?
III. The Economic Imperative
• The idea of globalization—the creation of a world market in goods, services, labor, capital,
and technology—is shown dramatically in the account of a journalist who asks a Dell
computer manager where his laptop is made.
Taiwanese, Irish, Israeli, or British firms with factories mainly in Asia, and
finally, the laptop was assembled in Taiwan (Friedman, 2005).
• Some economists defend globalization saying that the losses are always offset by the gains
in cheaper consumer prices.
o However, many working people, seeing their jobs outsourced to cheap labor in
understand how business is conducted in other countries (Varner & Beamer, 2011).
• American businesspeople should be able to negotiate deals that are advantageous to the
U.S. economy. However, they are not always willing to take the time and effort to do this.
• Cross-cultural trainers in the United States report that Asian business personnel often
spend years in the United States studying English and learning about the country before
moving operations to new locations, often overseas, because of lower labor costs.
o These business moves have far-reaching implications, including the loss of jobs at
closed facilities.
o Many U.S.-owned companies have established production facilities, known as
maquiladoras, along the U.S.–Mexican border, where workers produce goods bound