Globalization: American Economic and Political Policy effects on the World - Research Paper Example

December 5, Globalization: American Economic and Political Policy effects on the World Introduction United s companies influence the world in several ways. The research delves on the United States influence on the other countries’ economies. The research focuses on the United States influence on the political environment of other countries. United States policies directly affect the world. American Economic policy affects the world The United States imports products from other countries. The United States government’s website, www.export.gov, helps American businesses generate business transactions with China’s companies.1 The business transactions include exporting American goods to China. Similarly, the same government website offers American companies help in their desire to import goods and services from China. Products from some countries are cheaper than products produced in the United States. China’s cheap products were popular in the United States. The local United States residents prefer the cheap China imported products. Consequently, the Chinese exporters earn dollars from their exported products. The local Chinese exporters use the imported dollars to spur the China economy faster. Further, this is understandable. The same government website shows the relevant economic indicators of China. For example, China’s gross domestic production growth reached a favorable 7 and 1/2 percent during 2012 alone. China’s entry into the World Trade Organization during 2001 led to the rise in the economic power of China. Abiding by the organization’s economic provisions, China continues to profitably export its cheap products and services to other countries. In return, the countries generate savings from the cheap imported China products and services. China’s favorable economy is pegged on the reduction of its Yuan currency valuation. The reduction persuades other countries to generate huge savings from the very cheap China products.2 Furthermore, another article states the United States government transfers its crop cultivation activities to other countries. The government’s EPIC food crop cultivation process increases the farm harvests. The ERIC process focuses on resolving the ill effects of soil erosion. Soil erosion reduces the harvest quantities. The ERIC process stimulates crop growth, food nutrient quality, fertilization, pesticide use, tilling, and soil moisture.3 Furthermore, another article states the United States government places importance on export pricing strategies.4 With higher export pricing, the United States exporting companies will generate higher revenues than selling their exported products to other countries at lower selling prices. The article indicates the currency exchange rate affects the net revenues and profits generated from the American companies’ exported products. To ensure higher selling prices prevail, the United States government helps its companies hedge the selling prices on other related factors. Moreover, one hedging process is to prioritize benefiting from the current exchange rate fluctuations.5 To the United States exporters, the increase in the United States dollar’s exchange rate in relation to the foreign countries’ currencies will trigger a significant rise in revenues. Consequently, the government must institute measures to ensure the United States dollar exchange rate is stable, avoiding constant and unexpected currency exchange rate fluctuations. One currency exchange rate hedge strategy is to float the exchange rate. As the demand for United States dollar currency increases, the value of the United States dollar currency in relation to the foreign currency increases. American Political policy affects the world One article emphasized the United States government significantly influences exports transactions.6 The government influences how the provisions of that were previously implemented by members of the Gen. Tariff & Trade and WTO. The members are composed of countries from every corner of the world. The government espoused the laissez faire or market-based government control of international trade, in compliance with GATT and WTO provisions. Market based means the buyers and sellers are free to negotiate the agreed selling price of international goods and services. Some of the United States Government’ international policy provisions include protectionism provisions. The government protects some of the local American industries from the threat of international competitors and trade conditions. The United States exporters must adhere to the provisions of the WTO and GATT export provisions. In another article, the United States government uses its online website to communicate and transact with other governments, individuals, and groups7. The government uses the benefits of information technology to update other governments on the United States government’s latest politic-based policies. Specifically, the government’s Government Accountability Office manages its e- government information transfer. The United States government website reduces the costs, expenses, and operating activities of transacting or communicating with other governments and entities. The government’s laws ensure the privacy, confidentiality, and reliable information is retrieved by governments and other entities from the online government websites. Further, the same article third article reiterates the United States government coordinates with other governments to ensure the safety and security of its territorial jurisdiction.8 The risks from conflicts between groups, races and religions automatically require the United States government leaders to increase its homeland security strategies. The risks include chemical weapons attacks, biological weapons attacks, nuclear weapons, and bombings. The Asian countries were shocked by North Korea’s blatant firing nuclear weapons into the nearby seas. Concerned, the United States government contributed its share to helping contain the Korean nuclear weapons exercises. The United States and other countries imposed sanctions against North Korea for the unwarranted nuclear rocket launches. Communication between the United States government leaders and the Asian governments’ leaders focused on pressuring North Korea to stop its nuclear firings. Conclusion Based on the above discussion, the United States entities can influence the world in different ways. There is a close beneficial relationship between the United States’ economy and the other countries’ economies. The United States government significantly influences how the other governments’ political policies are implemented. Evidently, both the United States economic policy and politics-based policy directly affect the world’s economy and global politics. References: Export.gov. Welcome to the U.S. Commercial Service China!, 4 December, 2014, < www.export.gov > Balkovic et al, “Global Wheat Production Potentials and Management Flexibility Under the Representative Concentration Pathways,” Global and Planetary Change, 122, no. 1 (2014) Huang et al, “Hedging on U.S. Export Pricing,” International Journal of Economics and Finance, 2, no. 3 (2010). Junlei Peng, “U.S. Export Controls under WTO Law,” International TradeLabor Relations 3, no.1 (2011). Kyujin Jung, Han Park, “Citizens’ Social Media use and Homeland Security Information Policy,” Government Information Quarterly, 31, no. 1 (2014). Imad Moosa, The U.S –China Trade Dispute: Facts, Figures and Myths, New York: Edward Elgar, 2012), 180. Yang et al., “How is Information Shared Across the boundaries of Government Agencies? An e- Government Case study,” Government Information Quarterly, 31, no. 1(2014). Read More