Globalization: The Most Powerful Force in the World

1852 Words4 Pages
bulb-icon

Recommended: What are the negative impacts of globalization

I. Introduction

‘Globalization’ has been defined as “a phenomenon by which economic agents in any given part of the world are now affected by events that occur elsewhere than ever before.” Since the end of World War II, there has been a significant increase in economic growth and the standard of living as globalization has become a dominant force. However, globalization has negative implications as well in which it has contributed to the large disparity of wealth, and created a volatile market environment. Skeptics argue that globalization has “passed its peak” in which national governments have turned to protectionism in order to reduce its negative effects. Advocates of globalization argue that the integration of markets is ultimately irreversible, and attempts to block globalization have resulted in detrimental effects not only to global economy, but to domestic economy as well. This paper will argue that globalization has not yet reached its peak. Through the examination of arguments made by both skeptics and advocates of globalization, this paper will show that the recent global economic crisis has not reversed the phenomenon, but rather, has contributed to the rise of a new globalization.

II. The Rise of Protectionism

The 2007-2009 global economic crisis demonstrated the severe consequences of liberal globalization, and ultimately questioned the architecture of the economic world order that was established to avert such instability. The financial meltdown was a result of extreme moral hazard in which individuals took extensive risks in the market in order to pursue their self-interest. This financial collapse uncovered numerous institutional and governance failures within the global structure in which deregulation n...

... middle of paper ...

...nomist on April 15th, 2011 from .

Wolf 2004 4

Eichengreen, B. (2002). “The Globalization Wars” Foreign Affairs. 81(4). pp.157.

Ostry, S. (2006). “The World Trading System: In the Fog of Uncertainty”, Review of International Organizations. 1(2). pp.148

Cooper and Bradford, A. & Bradford, C. (2010). “The G20 and the Post-Crisis Economic Order.” Conference for International Governance Innovation. Retrieved on March 16th, 2011 from .pp. 8

Erlanger, S. (2008) “Sarkozy Stresses Global Financial Overhaul“ The New York Times September 25th, 2008. Retrieved on April 15th, 2011 from http://www.nytimes.com/2008/09/26/business/worldbusiness/26 france.html>.

Oppenheimer 1

Oppenheimer 7-8

Show More
Related

  • Impact of the Great Recession in Texas and the Rio Grande Valley

    2714 Words  | 6 Pages

    Petr, P., Sirpal, R., & Hamdan, M. (2012). Post-Crisis Emerging Role of the Treasurer. European

    Read More

  • The IMF’s Role in Financial Crisis

    2219 Words  | 5 Pages

    Weiss, M.A. (2009) ‘The Global Financial Crisis: The Role of the International Monetary Fund’, CRS Report for Congress.

    Read More

  • John Perkins - Confessions of an Economic Hitman: Strategy Book Review

    2066 Words  | 5 Pages

    From 1971 to 1980, the author worked as an ‘Economic Hitman’ (EHM) for the consulting firm Chas. T. Main, Inc. (MAIN). His role was “to cheat countries around the globe out of billions of dollars... to encourage world leaders to become part of a vast network that promotes U.S. commercial interests. In the end, those leaders become ensnared in a web of debt that ensures their loyalty” (p17). This was accomplished by the production of economic projections that would persuade the World Bank and other international organisations to lend money to these countries. After this money was spent on developing infrastructure in the countries in question – the contracts for which went to U.S. companies – they were left with large amounts of debts which they could not hope to repay. This in turn left these countries beholden to the United States’ economic and political interests, creating a ‘global empire’ controlled by “corporations, banks and governments” (Preface, p xiii). Perkins refers to this collusion of interests as the ‘corporatocracy’, and it is they who devised and carry out this strategy. The goal is not only to increase economic growth, both for the U.S. and the corporations themselves, but “to perpetuate and continually expand the system” (Preface, p xiii).

    Read More

  • The Impact of Multinational Corporations (MNCs) on Developing Countries

    1004 Words  | 3 Pages

    Gilpin, Robert. Global Political Economy: Understanding the International Economic Order. Princeton: Princeton University Press, 2001. Print.

    Read More

  • The Pros and Cons of Globalization

    2091 Words  | 5 Pages

    (Bilton et al 1996:5) The process of globalization has certainly had many changing effects to the world we live in; it has also changed the way many factors operate. Globalization is said "to have transformed the structure and scale of human relationships that social, cultural, political, and economic processes now operate at a global scale with a consequent reduction in the significance of other geographical scales. "(The Dictionary of human geography 2004:315) Globalization has had both positive and negative effects on a local, national, international and global level. Globalization often brings benefits at one level which cause negative effects at another, these results and the scale at which they manifest are often uncertain and unpredictable.

    Read More

  • Role of IMF and World Bank

    1430 Words  | 3 Pages

    International financial institutions are fraught with controversy despite their seemingly altruistic objective of providing economic support for ailing member nations. From evolving charters and Western bias to corruption and anti-globalization protests, there is little hope for consensus when dozens of member nations are driven by self-interest. But perhaps, in fact, it is this “invisible hand” of national self-interest makes these institutions work so well.

    Read More

  • The World Trade Organization: The Evolution Of The World Trade Organization

    1343 Words  | 3 Pages

    Gilpin observed that the establishment of the World Trade Organization (WTO) on January 1, 1995 as the principal forum for trade liberalization marked the biggest reform of the international trading system since the end of the Second World War. In this paper, I will provide an analysis of the evolution of the international trading system from its inception as the General Agreement on Tariffs and Trade (GATT) to its incarnation as the World Trade Organization (WTO), taking into account the changing international economic environment and political realities.

    Read More

  • Summary Of The Globalization Paradox

    1436 Words  | 3 Pages

    Following the Great Recession, the world has been facing complex global transformations. Dani Rodrik’s “The Globalization Paradox: Democracy and the Future of the World Economy” portrays the challenges of the implications that our current model of globalization relies upon. Rodrik’s work reveals both the implications and connections of the relationships between markets, the states, and globalization in the currently changing world. Throughout the book, Rodrik argues the validity of five key points: markets require regulatory institutions, such institutions take on a variety of forms, societies should orient their market-supporting institutions to their own unique needs, markets that are responsive to democracy can avoid institutional convergence, and a world that is responsive to democracy will not reach full globalization. This book has made me question the long term sustainability of the already evolving economic globalization process. Rodrik explains that the process of globalization must be managed so that the entire world can benefit.

    Read More

  • Globalization: The Path to Destruction

    1766 Words  | 4 Pages

    Just imagine waking up in squalor, a once prominent society, now a desolate wasteland. All because foreign interest has raped your land of its natural resources and you seen not a cent in profit. Although, globalization is unifying the worlds developed nations and is bringing commerce to nations that have struggle in past years. True, globalization has many positive effects but do the pros outweigh the cons. In this essay I will discuss Globalization ruining the integrity of many countries and also is forcing many undeveloped nations into a bind, and is causing economic distress on some developed nations. Also, due to economic globalization the nations of the world are diluting their culture, sovereignty, natural resources, safety and political system. My goal is not to change your way of thought, but only to enlighten you of the negatives of global economic expansion.

    Read More

  • Globalization: A New Form of Economic Imperialism

    2008 Words  | 5 Pages

    Globalization is a new concept that was introduced to the world after the fall of the communist regime. Globalization has to its identity social, economic, and political reforms, .however the globalization that we are about to discuss is the term that combines the past socio-economic and political reforms and cross with them to the world where their are no boundaries, restrictions, and immobilization what Mittelman describes as ? cross-border flows of capital, knowledge, and consumer goods ? (Mittelman 1). For the world to become a one or a single entity it has to pass through a process of economic, and technological integration. The consequence of this unification is the aim of this research, positive and negative, although the negative aspects will be the dominating part.

    Read More

  • Impact of Globalization on Indian Economy

    1556 Words  | 4 Pages

    Globalization is the new notion that has come to rule the world since the nineties of the last century with the end of the cold war. The frontlines of the state with increased reliance on the market economy and renewed belief in the private capital and assets, a process of structural alteration encouraged by the studies and influences of the World Bank and other International organisations have started in many of countries. Also Globalisation has brought in new avenues to developing countries. Greater access to developed country markets and technology transfer hold out promise improved productivity and higher living standard.

    Read More

  • The Global Economic Crisis

    664 Words  | 2 Pages

    In the late 2000s, the World suffered from a big global economic crisis which caused “the largest and sharpest drop in global economic activity of the modern era”, in which “most major developed economies find themselves in a deep recession”, according to McKibbin and Stoeckel (1). Because its consequences have a very big impact to the whole world, many economists and scientist have tried to find the causes of the crisis; and some major causes have been emphasized are greed, the defection of the free market system, and the lack of prudent regulation and supervision. This essay will focus on the global imbalances, one of the most important causes of the current economic crisis.

    Read More

  • The Disadvantages of Globalization

    1583 Words  | 4 Pages

    Krain, Matthew (2005), “AP Comparative Government and Politics Briefing Paper: Globalization,” [http://apcentral.collegeboard.com/apc/public/repository/ap05_comp_govpol_glob_42253.pdf], accessed 15 May 2012.

    Read More

  • The Importance of Globalization

    1568 Words  | 4 Pages

    Using 1997 financial crisis and other examples, discuss how globalization is important to the modern business journalism. Introduction

    Read More

  • Globalization and State Sovereignty

    1784 Words  | 4 Pages

    Brinkman, June E., and Richard L. Brinkman. "Corporate Power and the Globalization Process." International journal of social economics 29.9/10 (2002): 730-52. Print.

    Read More

More about Globalization: The Most Powerful Force in the World

Open Document