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"Globalization, both as an ideology and process, has become the dominant political, economical and cultural force in the 21st century." Quote from "Globalism: The New Market Ideology" by Manfred D.Steger, Page 6 One of the biggest questions currently asked in international politics seeks to determine the role that globalization plays in world and its effect on state relationships. While there is debate about the extent to which globalization is occurring and influencing international relations, there is no doubt that countries are becoming more integrated. Simple integration, or "exchange across borders," however, is not the same as globalization, which involves the "breaking down barriers." While globalization has many dimensions, economic integration is particularly interesting since it holds the greatest promise for preventing future wars. The period before the First World War was characterized by a similar period of economic integration that caused political scientists, such as Norman Angell, to speculate that war had become impossible, yet only a few years later World War I broke out. In order to determine if war will again stop the processes of globalization and economic integration, one must compare the foundation of economic integration before the War and its resulting collapse to current economic integration. In doing so, one finds that the establishment and maintenance of international institutions after World War II through the Cold War until today sets standards of behavior, encourages international discussion about ideas, and promotes democratic values, all of which help prevent future war. However the main reason that states join such institutions is for economic benefit in the form of fewer tariff and no...
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...ery few wars between the United States, Japan, and Europe since the establishment of these institutions (Ikenberry, 251). There is, however, a limit to the extent international institutions can affect global markets. International institutions are careful about making overarching rules about liberalizing foreign investment because such rules would be dangerous to developing countries (Abdelal, 343). While opening markets helps developed countries grow, developing countries must divert resources away from more immediate needs of their citizens.6 In fact, the fastest growing countries liberalize trade and investment only after an initial period of high growth (Rodrik, 326). This means that the scope of institutions must be limited to countries that are already developed.
Steger, Manfred D. Globalism: The New Market Ideology. Rowman & Littlefield Publishers, 2002.
In conclusion, economic integration and economic globalization help reduce the probability of interstate belligerency because war negatively impacts the markets and investments, post World War reconstruction helps build stronger economies and lastly, countries would rather focus on specialization than war. In addition, economic integration and economic globalization help the economy grow and expand. These points show that war and conflict is decreasing because countries that are economically integrated prefer to free trade without any restrictions. As a result, markets increase since countries have more access to trade and that leads to an increase in globalization, whereas war would put the countries’ economies at risk.
Globalization admittedly has several benefits that the author acknowledges including integrating global business communities and economies, reducing poverty, reducing trade barriers, providing poorer countries with much needed foreign aid, as well as reducing the isolation of developing countries. However, with major meetings of the IMF, the World Bank, and the WTO becoming scenes of conflict and rioting, Stiglitz attempts to explain why globalization has become so
Even in a world focused on the benefits free trade and aimed at achieving the goal of free trade, states are protectionist by nature. Unfortunately, the design of the international system allows for stronger nations to be more protectionist, leaving the weaker states even more vulnerable. A study that is more intensive than a critical commentary should be devoted to analyzing the impact of free trade on developing nations. I was limited to the readings and prior knowledge, and thus couldn’t provide a sufficient analysis on the fair treatment of developing nations. I was skeptical of the one reading that focused on fairness of international institutions because of the statistics that indicate these nations have not done well in recent decades. I would like to look into this more given more time and resources.
Although it already existed long before through primitive trade and migration, globalization has become a major factor in the world organization since the twentieth century. With the creation of transnational companies, intergovernmental and non-governmental organizations, political and economic associations appeared new powerful actors that cannot be left apart in states’ decisions and whose influence may, according to some, threaten the authority of nation-states. Indeed it can be thought that globalization is causing the end of borders between countries and what is more that it is creating a sort of universal society in which states’ sovereignty is not the main authority anymore. However this essay will try to demonstrate that globalization is not undermining state sovereignty but that it is in fact leading to its transformation and to a new variety of nations. In order to prove it I will first define the main key words and will then focus on the different arguments about the effects of globalization and finally I will demonstrate that globalization has led to a transformation of the concept of state sovereignty.
“The world is a global village”, is a metaphor that was coined by the Canadian scholar Marshall McLuhan to describe the perceived experience of a smaller world resulting from the effects of modern technology, faster communication and improved transportation, despite geographical boundaries (1). The various processes that have produced this phenomenon can be called globalization. There are many definitions of the term globalization; Delbruck 1993 defined globalization as "a process of denationalization of markets, laws and politics, in the sense of interlacing people and individuals for the sake of common good"(2). Fidler 1996 aptly described globalization as a complex process of, “political and economic intercourse between different sovereign states” on the premise that such interdependence will result in states being better off and as such building stability, peace and order in the international scenario(3). Globalization has resulted in a gradual erosion of the traditional distinction of national and international activities through political, social and economic interaction between different countries, leading to a fusion or overlap of domestic and foreign policies(4). However, globalization differs from internationalization, the latter referring to a process where each country attempts to fulfil their national interest by co-operating with other countries in areas where they are incapable of achieving desired outcomes on their own(3) . Its key points are co-operation between states, while preserving sovereignty. Globalization on the other hand entails co-operation and undermines the sovereignty of nations.
...MENT ENCOURAGEMENT OF GLOBAL BUSINESS FOREIGN GOVERNMENT ENCOURAGEMENT Governments also encourage foreign investment. The most important reason to encourage investment is to accelerate the development of an economy. An increasing number of countries are encouraging investments with specific guidelines toward economic goals. MNCs may be expected to create local employment, transfer technology, generate export sales, stimulate growth and development of the local industry. US GOVENRMENT ENCOURAEMENT The US government is motivated for economic as well as political reasons to encourage American firms to seek opportunities in the countries worldwide. It seeks to create a favorable climate for overseas business by providing the assistance by providing the assistance that helps minimize some of the troublesome politically motivated financial risks of doing business abroad.
An outstanding mechanism frequently used to interpret ‘Globalization’ is the ‘World Economy’. Back to the colonial age, the coinstantaneous behaviors of worldwide capitals and energy resources flowed from colonies to western countries has been regarded as the rudiment of the economic geography (Jürgen and Niles, 2005). Nowadays, the global economy was dominated by transnational corporations and banking institutions mostly located in developed countries. However, it is apparently that countries with higher level of comprehensive national strength are eager for a bigger market to dump surplus domestic produce and allocate energy resources in a global scale, thus leads to a world economic integration. This module was supported by several historical globalists (Paul Hirst, Grahame Thompson and Deepak Nayyer) ‘their position is that globalization is nothing new but more fashionable and exaggerate, a tremendous amount of internationalization of money and trade in earlier periods is hardly less than today.’ (Frans J Schuurman 2001:64).
Central to the entire discipline of global politics after the Second World War, is the concept of European Integration. In the aftermath of the Second World War, Europe found itself in a state of economic devastation and with various problems to solve. Besides, the continent was soon to be divided into two major spheres of influence by the beginning of the Cold War. The Cold War was a constant state of political and military tension amongst powers in the Western Bloc (the United States) and powers in the Eastern Bloc (the Soviet Union and its allies) (Judt, 2005, p.1). Soon after the beginning of the conflict, several treaties and institutions were established in order to create collaboration between Western European states.
Realist perspective explains globalization in terms of the relative distribution of power (Nau 2007, 278). In their opinion, trade and economic activities thrives “only under favorable security conditions,” and those conditions rely on the relative distribution of power (Nau 2007, 279). They believe that alliances and hegemony are the two most affirmative security conditions. “’Free trade is more likely within than across political-military alliances; and …alliances have had a much stronger effect on trade in a bipolar than in to a multipolar world.’” (Nau 2007, 279) In other words, the fewer dominating states with power there are in the system, the stronger is the alliance and its effect on trade. In a multipolar world, countries cannot trust each other in trade because alliances are rarely permanent and therefore, countries might use the gains from trade to increase its military power and threaten to cause damage to the other country. Thus, realists argue that,
Globalization as mentioned before implies no borders especially to the flow of money and information resulting in a decrease in the autonomy of the governmental administration. The economic factors are guidelines for the governmental framework. And in a global market the investment within a country is not limited to its citizens, yet foreign investors do enter the market affecting the governmental policies as much as the citizens do if not to a higher level. The threat imposed by the foreign investors comes in the sense that the government is so dependent on their investment to the extent that if they take their investment else where will lead to the crash of the economy, this will lead the government to comply with all their demands. A good example of this is the As...
international politics (politics in general) are objective to be interpreted by one's own understanding of
Over the last couple of years, the world has become increasingly globalized. After the cold war, all parts of the world were attracted to the process of globalization. The effect of globalization is uneven in different parts of the world and globalization suggests a world full of persistent cultural interaction and exchange, contacts and connection, mixture and movement. Different people view globalization in different ways. Some people feel it has done more good than harm, while others believe it has done more harm than good. This essay will give a deep intuitive understanding of globalization, world systems, and how globalization has affected society, culture, economics, and politics.
The term ‘Globalization’ refers to the integration of economies, industries, markets, cultures and policy-making around the globe. It explains a progression by which both national and regional economies, societies, and cultures have become incorporated through the universal system of commerce, communication, migration and transportation. Globalization can be explained in economic and sociological contexts. Malcolm Waters, in his book– ‘Globalization’ writes that “Globalization is a social process in which the constraints of geography on economic, political, social and cultural arrangements recede, in which people become increasingly aware that they are receding and in which people act accordingly.” Whereas, Nobel laureate and economist Joseph Stiglitz in his book ‘Globalization and Its Discontents’ says that ”Globalization is the closer integration of the countries and peoples of the world.brought about by the enormous reduction of costs of transportation and communication, and the breaking down of people across the borders."
There is an undeniable fact that there has been a rise in globalization. It has become a hot topic amongst the field of international politics. With the rise of globalization, the sovereignty of the state is now being undermined. It has become an undisputed fact that the world has evolved to a new level of globalization, the transferring goods, information, ideas and services around the globe has changed at an unimaginable rate. With all that is going on, one would question how globalization has changed the system that is typically a collection of sovereign states. Do states still have the main source of power? What gives a state the right to rule a geographically defined region? It is believed by many that due to the introduction of international systems and increasing rate of globalization, the sovereignty of the state has been slowly eroded over time. My paper has two parts: First, it aims to take a close look at how globalization has changed the way the economy worked, specifically how it opened doors for multinational corporations to rise in power. Second, to answer the question, is it possible for it to exist today? And even so, should it?
The process of globalization allows the global market to include products and services from all the companies around the world, including all the investments that are across national borders. Indeed, many American companies have taken their merchandise, manufacturing and services to invest in other countries. However, this has produced a negative effect on the global economy. American companies who invest in other countries produce an economic deficiency for the country, similarly companies that invest in other countries produce a loss in the global economy that affects the citizens of the whole world.