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High-income nations

The World Bank defines high-income nations as having a gross national income of at least $12,746 per capita. The OECD (Organization for Economic and Cooperative Development) countries make up a group of thirty-four nations whose governments work together to promote economic growth and sustainability. According to the World Bank (2014b), in 2013, the average gross national income (GNI) per capita , or the mean income of the people in a nation, found by dividing total GNI by the total population, of a high-income nation belonging to the OECD was $43,903 per capita and the total population was over one billion (1.045 billion); on average, 81 percent of the population in these nations was urban. Some of these countries include the United States, Germany, Canada, and the United Kingdom (World Bank 2014b).

High-income countries face two major issues: capital flight and deindustrialization. Capital flight refers to the movement (flight) of capital from one nation to another, as when General Motors automotive company closed U.S. factories in Michigan and opened factories in Mexico. Deindustrialization , a related issue, occurs as a consequence of capital flight, as no new companies open to replace jobs lost to foreign nations. As expected, global companies move their industrial processes to the places where they can get the most production with the least cost, including the building of infrastructure, training of workers, shipping of goods, and, of course, paying employee wages. This means that as emerging economies create their own industrial zones, global companies see the opportunity for existing infrastructure and much lower costs. Those opportunities lead to businesses closing the factories that provide jobs to the middle class within core nations and moving their industrial production to peripheral and semi-peripheral nations.

Capital flight, outsourcing, and jobs in the united states

A run-down auto parts building is shown here.
This dilapidated auto supply store in Detroit is a victim of auto industry outsourcing. (Photo courtesy of Bob Jagendorf/flickr)

Capital flight describes jobs and infrastructure moving from one nation to another. Look at the U.S. automobile industry. In the early twentieth century, the cars driven in the United States were made here, employing thousands of workers in Detroit and in the companies that produced everything that made building cars possible. However, once the fuel crisis of the 1970s hit and people in the United States increasingly looked to imported cars with better gas mileage, U.S. auto manufacturing began to decline. During the 2007–2009 recession, the U.S. government bailed out the three main auto companies, underscoring their vulnerability. At the same time, Japanese-owned Toyota and Honda and South Korean Kia maintained stable sales levels.

Capital flight also occurs when services (as opposed to manufacturing) are relocated. Chances are if you have called the tech support line for your cell phone or Internet provider, you’ve spoken to someone halfway across the globe. This professional might tell you her name is Susan or Joan, but her accent makes it clear that her real name might be Parvati or Indira. It might be the middle of the night in that country, yet these service providers pick up the line saying, “Good morning,” as though they are in the next town over. They know everything about your phone or your modem, often using a remote server to log in to your home computer to accomplish what is needed. These are the workers of the twenty-first century. They are not on factory floors or in traditional sweatshops; they are educated, speak at least two languages, and usually have significant technology skills. They are skilled workers, but they are paid a fraction of what similar workers are paid in the United States. For U.S. and multinational companies, the equation makes sense. India and other semi-peripheral countries have emerging infrastructures and education systems to fill their needs, without core nation costs.

As services are relocated, so are jobs. In the United States, unemployment is high. Many college-educated people are unable to find work, and those with only a high school diploma are in even worse shape. We have, as a country, outsourced ourselves out of jobs, and not just menial jobs, but white-collar work as well. But before we complain too bitterly, we must look at the culture of consumerism that we embrace. A flat screen television that might have cost $1,000 a few years ago is now $350. That cost savings has to come from somewhere. When consumers seek the lowest possible price, shop at big box stores for the biggest discount they can get, and generally ignore other factors in exchange for low cost, they are building the market for outsourcing. And as the demand is built, the market will ensure it is met, even at the expense of the people who wanted it in the first place.

Many people at workstations in a call center are shown here.
Is this international call center the wave of the future? (Photo courtesy of Vilma.com/flickr)

Questions & Answers

what are the consequences of schooling in view of norms of independence
Sitali Reply
social endurance
Olumide
what is the importance of durkhiem in sociology
Roselyn Reply
he analysis the role of human interaction and it's operation to explain, conceptualize and infer on social realities and the social representations.
Mary
what are the uses of culture
Folorunso Reply
Define society in relation to sociology
Tuxa Reply
society is a group of people who live same geographical area and has similar culture while sociology is the study society and how they interact.
yuusuf
origin of sociology
Ayshatrah
what is conflict theory, structural functionalism theory
Beene
what do sociologists study
Rachel Reply
The establishment; its economic system, education system, law, governance, society's behavior, society (in general), demographics, beliefs, cultures etc.
Leonard
aociologists study how society and people interact systematically and differencies of the world
yuusuf
they study group behaviour
owais
I have an assignment on sociology to interview people who have vulnerable diseases such as AIDS, Hepatitis, Cancer, Diabetes etc can someone advice me how to approach them because it's very difficult for me to do it
Mary Reply
Treat them with kindness like you would anyone else. No one likes to be treated with kid gloves - it's insulting and makes anyone feel marginalized. Do not approach them with piety (i.e., asking 'Are you okay?' with the slight head tilt). It's insulting and they will likely dismiss you immediately.
andi
treat them like you are a patient like also giving them motivational stories, play games with them
Great
sociological perspective
Davison Reply
When you are sick what should you do?You consult a physician likewise when the society is not functioning well what should the government do?Also consult a sociologist
Joseph Reply
hi where are you live mr joseph
Abdinasir
yes Abdinasir "in somalia"
yuusuf
and you
yuusuf
hy
nura
Hy is a for skin in Swedish.
Joakim
hi
yuusuf
Hi
Joakim
Hello everyone, who is from cameroon here because am tired with the 2 weeks ghost town here especially in North and South West region and I have not even done my sociology assignment I don't know were to start
Mary
hi everyone
Tariq
am new in this field I was given an assignment any one knows how to, need help
Davison
just give a tip of the assignment
Mary
Can you bring the assignment's question on board? if no than how one will know the assignment's question?
Emmanuel
who here for now?
Emmanuel
Is there anyone in here?
Emmanuel
how sociology affects in them adversity in age of globilization
mohamed
I leave in Nigeria
Joseph
hi
saad
Sociology affects people in many ways for instance, urban people's thought, life style, way of living is totally different than people live in rural areas. availability of Internet has impact on people because we spend leisure time with friends if we get time but now It's change due to internet.
saad
It depends on your geographic location, government, and what type of physician you are in need of. Always - regardless of where you reside - make certain that your doctor is aligned with an organization for physicians seeking higher ethical standards.
andi
hi Great from Zimbabwe ....and I'm new in this field
Great
Am a Nigeria
Olumide
hai
Machila
what is the relevance of sociology?
Love Reply
how conflict theory differs from functionalist theory in relation to education
kealeboga Reply
Education is a major social institution that helps transmit information, beliefs, and skills through formal training or teaching. Education plays a hug role across the world.
Timi
discuss how some symbolic interactionist theories view the family in relation to socialisation
kealeboga
how can counteract biases?
Hawa Reply
is so splendid
Aminu
hi
Aminu
how r u
Farhana
help me in my sociology questions
Farhana
yes
ali
hi sociologist society
yasir
what is social phenomena and it's nature
yasir
Hell am Ilham
Ilham
pls i want to understand dis course because my lecturer x not helping me at all he don't explain in details
Ilham
what do sociologists study?
Rachel Reply
define sociology of culture ?
Qamar
define sociology in culture ?
Qamar
Tell me how can I easily differentiate the methodology vs methods?
Rk Reply
hi
Praveen
Halo
Rk
hi
Hope
hallo how are you
Chilals
m fine nd u
ali
Good morning friends
Md
what is positivism anyone explain this
Amarkhan
The process of social change in the Caribbean society can not be analyzed using the major macro European paradigm as they ignore the caribbean's reality, to what extent is this statement true?
Keron Reply
True
Andrew
I am a PhD candidate and i am creating a Trinidad and Tobago 🇹🇹 centric model
Andrew
am a social work trainee.I want to thank you all for your questions and answers,they really useful to me. so thanks en keep it up
Fatoumatta
why is it true @Andrew
Keron
np. if u in trinidad i may fly home in a few weeks. provided i get a cheap flight for under 1000 us..lmao. you will do well i not worried. Be proud of your caribbean identity
Andrew
It is true because the theories and grounded in their culture.
Andrew
Think about it. If you sample is apples and my sample is 🍇 while the numbers may be the same the output would be different.
Andrew
forgive my fruit metaphor i love food
Andrew
Furthermore when you study Philosophy principles which are way higher than sociological principles you realize that the methodological assumptions (values) of various societies are different.
Andrew
Best FIT will always be better than Best PRACTICES! Create your own.
Andrew
are*
Andrew
It boils down to the demographics of your sample
Andrew
If you have to get a representative sample it must be representative of the Society aka the Population you sampling. Different Societal Structure different representative sample. hint hint. A British model can never be transferred to a Trinidad Society.
Andrew
this is a question for my sociology for project.... I need help
Keron
what is the caribbean's reality?
Keron
what is the Macro European Paradigm?
Keron
oh and Andrew I am from Jamaica
Keron
deconstruct the theme. Macro - large or big Caribbean Thinking (paradigm)
Andrew
just write why you think Jamaican thinking is better than England
Andrew
thats the crux of the question
Andrew
and the Caribbean's reality is?
Keron
sigh
Andrew
bro reality is relative
Andrew
the question demands u think
Andrew
how do u define Caribbean reality
Andrew
the music we listen, the food we eat, how we worship, our laws etc
Keron
What is psychology and discuss its major factors
Peace
explain in details five agents of sociology
Kaoma
Andrew what factors that makes people to stop socialising
Kaoma
I am not agree to data analysis and payment
Dipeshkumar Reply

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Source:  OpenStax, Introduction to sociology 2e. OpenStax CNX. Jan 20, 2016 Download for free at http://legacy.cnx.org/content/col11762/1.6
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