U.S. globalization - Essay Example

U.S globalization al Affiliation) Globalization Globalization is the process that brings interaction and integration that occurs among government of different nations, people and companies. Globalization is always accelerated by international trade that occurs between nations and the process leads to changes in environment, political systems, cultures and economic development of a country. Globalization is a practice that developed long time ago when there was buying and selling of goods in the land that occurred in long distance1. The earlier globalization differs with the current as currently it entails opened policies that are both domestic and international. Globalization come with challenges and benefits that governments need to take into consideration. Challenges facing globalization Challenges that are faced due to globalization are those that need to be addressed by civil society, the governments and other organizations that create the policies. One challenge that is much faced in globalization is the ensuring that the benefits that are obtained from globalization extend to all countries. This becomes a challenge as the happening will not be automatic and the implementation has been a problem. The second challenge that is faced in globalization is dealing with the fears that occur that the process leads to instability in a country. the instability is able to occur much in the developing countries. The developed countries are stable and they are not prone to instability through globalization than it is in developing countries. The third challenge that is experienced is to address the issue in the industry that increase in global competition will lead to inevitably to the fall in wages, labor rights, practices due to employment and deterioration in environment standards. Another challenge that is experienced due to globalization is that the complicated problems are used as mere excuses in avoiding the search aimed at new ways to cooperate in the overall interest of a nation and the people that live in the nation. Organizations that are in the civil society traditionally had the focus of aid and transfer of resources. There has been a challenge due to the broadened environment and the complex issues that come about due to the international financial flow and investments. This leads to backlash against globalization which also contributes lack of will to support multilateral collaboration. Globalization leads the government in deciding what to do about the civil society by identifying new strategies to deal with organization. This calls for development in different sectors of a country. Another challenge is experienced in multilateral institutions as there is the concern of transparency and participation. Achievement of this due to globalization is difficult since the government institutions are not always comfortable with involving the civil society in decisions that they make2. For globalization to occur, there are always political discussions that are engaged into with leaders from all the countries participating attending. Disagreement is likely to occur in the meetings that are held. Theories of globalization Just like the proponents of Neo-Classic, the success of the United States economy is due to market dependency and the role of the state. The forces of economic development and forces of globalization in United States has transformed the relationship between the states. The relations is attributed to the incentives the United States government has used in resolving their political disputes. Just like the thought of liberal economists, the United States and its globalization believes that everyone has to benefit and every citizen has to better off. This is because failure to consider the inequality benefits then the country would miss their political aspects of their independence. Just like the believe of Ricardo, David, the United States has a comparative advantage in their good’s production because the of the reduced opportunity cost compared to other nations. Additionally, united States believe in free market mechanism. Under this mechanism, the policies of the United States changed the economic incentives, reduce market forces, and operates against the economic development. Since the United States markets produces losers and winners, liberals believe that the openness that accompany the globalization will benefit all. According to the neo-classical economists, the main source of underdevelopment is policies that the government has put in place. According to Richard Cooper, the continuous clash between technological and economic forces uniting the world and globe endless political fragmentation causes economic instability to undermine the efficiency of the world economy. Consequently, the analysis of the Cooper emphasized the political foundations to mitigate the effects and educate developing countries can be beneficial. Based on Thomas Friedman thoughts, United States must sacrifice the economic sovereignty to multinational corporations and capital markets. Friedman believes that training and education of Americans to compete with other nations in an international economy that is under tight competition. Globalization in United States United states have been seen to invest in friendly foreign countries and they pay prices for complacency. There have been problems that have been experienced in the country due to globalization and the debate that have been put on tax has not helped but has just uncovered the gap that exist between the policies that are by the government for the companies for the ability to compete internationally3. The gap is able to bring more problems if it is not reduced. United states have been seen to be undecided about globalization. This comes due to the worry on the trade-offs between the goods that are of low cost and the loss of manufacturing jobs. For the past years, there has been a push as republicans, democrats and Americans to be connected and become balanced in the world. Due to globalization, there was inversion that triggered a number of intended and consequences that were not welcoming due to the companies that were rushing to move their headquarters in the foreign countries or selling themselves to companies that were not in the company but in the foreign companies and threatening to reduce the investment that they had and hiring at the U.S subsidiaries. World system theory on globalization which originated from part of the European and globalization leads to technological innovation and rise of market institution. The system has led to stimulation of long distance trade which stimulates the countries to reach other parts of the world4. The system has established economic ties with other regions which in turn lead to accumulation of wealth in a country. In 2008, there was a panic by United Kingdom about a wave of companies that in the country leaving the country for more friendly tax in other countries. Due to globalization in the United States, consumers have been able to enjoy variety of goods and services that they would not be able to enjoy if they only depended on the domestic products. In response to the goods and services that are enjoyed in the country, the United States developed government agencies and international institutions that have established to enable the management of trends that are rapidly developing. Increase in the international trade in United States has led to much growth in the world with the focus on raising incomes, increasing the earning power of the workers, creation of jobs and reduction of prices. Trade that occurs internationally has brought about political, economic and social disruption in trade. Involvement of international trade by United States has led to global interconnection which leads to suffering of recession5. The effects that brought about as a result of recession are seen to lead to decrease in trade through loss in jobs and businesses. United States has demonstrated strengths in globalization following the breakup that occurred between it and the BRIC economies. The break led to several instances such as the shift of dollar from top currency to negotiable which led to reduction in balance of trade deficits, serious foreign debt and increase in the dependence in external funding. The power of United States declined due to globalization with increase in predominance in military. In dealing with the situations in the country, United States resorted to the role of international institutions. This was to deal with the dilemmas which were more complex. The international institutions that were involved include World Bank, IMF and WTO as the most international economic institutions. IMF was secure in the situation as they were able to retain the confidence in the north. The instruments that were used were stabilizing programs in the loan sector and foreign debts. The instruments that are used mainly focus on monitoring global currency imbalances and also the rise on foreign funds. Conclusion In dealing with globalization, the history still needs development strategy. The best strategy that can be used will include the reality and the historical materialist as well as being a liberal characteristic. A best strategy that can be chosen by some countries and institution may not be the best strategy for other. Bibliography Appadurai, Arjun. 2001. Globalization. Durham, NC: Duke University Press. Gerdes, Louise I. 2006. Globalization. San Diego, Calif.: Greenhaven Press. Read More