International relations - Assignment Example

Download file to see previous pages For instance, in 1990, China maintained a fledgling securities market as a result of Chinese government influence and control over domestic businesses. However, with more incentives being offered to foreign companies for foreign direct investment in China, now the securities market is valued at over one trillion RMB (Liang & Useem, 2009). Advances in Chinese industry (and other developing nations) have improved their gross domestic product and enhanced government economic strength. This has given other nations, other than the hegemonic United States, more authority in military development and economic strength which alters diplomatic and other political strategies rather than having a dominant U.S. dictate international policy.
Furthermore, with the development of the World Trade Organization, the interests of free trade between nations (which contributes to economic health of foreign states) have created more multilateral agreements that are of benefit to all member nations. This, too, challenges the dominance of the United States as a global hegemonic authority. As more foreign nations begin to recognize the advantages of adopting neoliberal policies directed at supporting a more capitalistic system, the economic advantages and military advantages once held by the United States are challenged by more stable governments and economic systems in foreign states.
Religion is a factor that challenges success in all aspects of globalization. Islam, as one example, maintains a mass following in many Middle Eastern nations. Religion, however, can challenge the power of the state through membership volume and restricting foreign direct investment by many businesses looking for new market entry as a result of conflict over product and service philosophy. This reduces economic security of hegemonic states by slowing FDI that brings substantial government ...Download file to see next pagesRead More