The Impact of Globalization on State Relationships

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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.

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