Is Globalization a Threat to Economic Sovereignty - Assignment Example

Task Is globalization a threat to economic sovereignty? Introduction Globalization explains the spread of resources, economic advancement and sweeping technological entities across the globe to be identified as the standardized measure. Global groups and the current transport networks that encourage an ease in communication have boosted the spread on this global entity (Worthington). Economic and social attributes have been distributed across the globe at an instant pace that dictate the image of various known figures around the world. Most individuals, especially in the developing realms have found difficulty in adjusting to the globally set standards because in most cases, extra expenses are incurred that may limit their economical adaptations. Sovereignty, on the other hand, is the ability of a country to possess total authority and control over its resources. It simply means being able to dominate individual market with products and technology without influence from external groups and influence. Most developing nations struggle to impose internal policies individually to achieve advancement. They have to rely on aid from global groups and super-power realms like the United States to set the trend and provide monetary aid. With globalization rapidly increasing in the 21st century, markets have found a need to cope with the trends set by advanced nations in their quest to achieve economic progression. Multi-global groups like the Coca-Cola and Toyota motor company have been at the forefront in limiting global boundaries to bring nations together. UN and WB are further examples of the means globalization may be spread. There are global trends set by these groups to be met when handling internal affairs to adhere to the regulations set to promote peaceful coexistence. This paper analyzes the pros and cons of globalization to deduce its influence to economic sovereignty. Spread of Globalization and its advantages Mostly, economic sovereignty offers its citizen satisfaction and respond to the desired lifestyle that they deem fit. Once an entity is globalized, it would entail its popularity in a wider region with ideas and technological concepts transferred among the group that is covers (Binde, 107). The population embraces the idea with a common language depicting the stature that is the characteristic in the market. The globalization concept was spread across the world with the end of the cold war to remove trade barriers that nations had imposed to impair economic progress across borders. Globalization is realized within nations when they implement strategies that are recognized across borders. These are sometimes implemented in trading sanctions and regulations that permit the flow of goods within its borders. Globalization has made trade easy in the 21st century via the formation of global group allowing nations to engage freely in economic activities through promotion of global markets. This provision has allowed the flow of new products freely within the borders of nations boosting domestic advancement and creating opportunity for the locally manufactured products (Malaspina, 158). With the previous system where economic sovereignty provided strict laws for economic activities limiting the involvement of other global groups, realms realized little advancement. Globalization promotes a wider market for the economic events creating room for technological advancement and involvement in trade. Information is shared to create easy platforms that are needed to uphold success within nations that need to advance into the standards set by developed nations. These nations have been offered a venue to advertise their products to a global market that may provide a wider market population in realizing increased profits. Most economic sovereignty impairments are realized in developing realms as they have struggled to sustain their economies to support the vital setbacks limiting advancement. They normally struggle with hunger and inflation of products that are mostly inaccessible to the poor class individuals within the society. Globalization has made advancement in technology and communication platforms within the independent nations, especially through the internet that provide an updated global platform of function, and the necessities that ought to be applied to meet the market standard. With the regulation of the foreign exchange platform, and the dollar providing the majority of the trade exchange strategies, tax levying and further trade barriers within boundaries have been uplifted. Domestic currency against the dollar has been measured to realize overall economy advancement and price standards of the finest world’s resources like oil. Individual nations have improved dramatically by bolstering economic rules and structures to meet global standards by introducing certain rules targeting exchange of products. There has been the creation of an order that provides security in trading activities while curbing local sanctions and trading impairments that limit domestic growth. An example exists in a third world economy where power is devolved among the wealthy hence promoting inflation and impairing economic advancement. Globalization has advanced the involvement of global groups that are given power by individual globalized nations to provide rules promoting equality. Goods are then made easily accessible to the majority in affordable rates and aid provided to the starving population who rely on these groups for the mode of survival. With the responsibility accorded these global groups like UN, corruption is regulated because they are allowed to persecute perpetrators in the global court where domestic policies have failed to contain injustice. Limitations of Globalization and Effects to Economic Sovereignty Globalization has made vast improvements within economies and nations, but has allowed transfer of vices that have crippled nations. Individuals are expected to match to global standards set by most developed nations in order to compete in gaining fame and advancement. The global market normally favors nations with high-quality products to sustain economic progress required in achieving progress. Most nations lack the internal facilities to promote the manufacture of completed products that would sell in the global market. Mostly, they rely on exporting raw materials to developed realms that can complete the processing stage, therefore, incurring extra expenses. Globalization has further spread unwanted traits especially through the internet that is open to be accessed by any societal individual. Secrets of realms and morally degrading issues are frequently discussed through the portals to create market barriers and global friction. Moreover, global groups like the UN have created rules to impose on members that may counter their internal provisions. This kills sovereignty because nations are required to adhere to the set standards to maintain global equality. Some of these provisions may limit the power among the economically stable nations who dictate the rules set in the global markets (Zhongying). Economic globalization is governed by IMF, WTO and IMF who have since played crucial roles in setting the trends within members to regulate trade terms. The nation loses control over its internal economic activities as they adhere to the policies set by these groups. These groups have diversified with the intention of making the activities and living conditions within the member realms favorable. The irony, however, is seen in their formation because their existence is impaired without their members. The groups are accorded powers and control to enact within its boundaries that are decided by the founding nations. With increased responsibility to make global markets easily accessible, a nation is forces to adhere to principles set by the group to regulate their trading terms. Any violation to the morals set would lead to a fine or persecution executed upon them in retaliation to the nature of crime committed. In developing economies that have limited advancement resources, they find the need to obtain help from global group and developed nations that encourage overreliance on external governance. This has significantly reduced economic sovereignty with their government lacking appropriate resources to promote advancement. The entity is sometimes known as neo-colonialism, which limit the identification of resources and their potential to promote the advancement needed in sustaining economic growth. The economical advancement requires technological knowledge and a skilled labor force that would invent strategies to produce more goods. The markets have set a higher trend that prompts high-quality goods production with a few nations being capable of meeting this provision. Globalization has further created a distinction between nations with high productive states occupying the larger share of the markets due to their advanced technology. The modern century has limited the independence on nations in economic control because they have to rely on the global standards to set their policies. The groups have countered the existing domestic rules that have impaired nation’s advancement to set a constant global level of guidelines to limit sovereignty. They argue that through implementing the desired rules, nations are able to co-exist at a similar level without trade sanctions and barriers. Though sometimes beneficial especially during global transactions, the weight is felt within the borders as harsh taxes and enormous prices imposed in the mass. The prices of commodity and the foreign exchange value are used to determine national policy, which regulate the economy. The loss in the economic control of a country would mean the onset of globalization. Global activities that encourage the exchange of policies, and attributes along a wider market have been termed globalization entities. There is a need to reduce the boundaries to exchange ideas and principles in communication and technology, but not every nation can adhere to certain global standards. There is evidence that, with the advancement of globalization, economic sovereignty is killed, especially with the formation of global groups. The power accorded these groups emanates from the members that create the laws for a better trading platform. They have since been successful in eradicating majority of the trade barriers within nations and offered better trading platforms promoting internal advancement. However, the negative effect of the groups is less experienced in developed nations that have built stronger economic plans. They are capable of operating at a similar level compared to the group formed and maintain their sovereignty. The burden is witnessed among underdeveloped nations that rely on aid from the groups to support their livelihood. Research conducted has articulated the campaign to limit the operations of these groups has been witnessed among the higher-class individuals who would want to benefit from imposing harsh rules on the majority. With the reduced economic sovereignty, nations have been able to import products from other nations to support the economy and established programs that target the poor. Globalization has revealed the plight of underdeveloped nations and set a standard in the global market that would thrive. Despite globalization being a threat to economic sovereignty, most underdeveloped nations have benefited from the fete. Globalization has lifted global sanctions and promoted free trade (Fournier, 105). The technological and communication tools are shaped to a positive state with the inclusion of free markets. Global markets provide a wide demand for produced goods, therefore, establishing rapid economic growth. There is realization that globalization would impair nation’s economic independent, but the eventual benefits are numerous (Bourguignon, 1). Therefore, though globalization may limit independence of activities in nations, sharing advancement attributes would bring more benefits. Works Cited Binde, Jerome. The future of values: 21st-century talks. New York. Berghahn Books, 2004. Bourguignon, François. Making sense of globalization: a guide to the economic issues. London. Centre for Economic Policy Research, 2002. Fournier, Pierre. A Meech Lake post-mortem: is Quebec sovereignty inevitable? Montreal. McGill- Queens Press - MQUP, 1991. Malaspina, Ann. Critical Perspectives on Globalization. New York. The Rosen Publishing Group, 2005. Worthington, Glenn. Globalisation: Perceptions and Threats to National Government in Australia. Parliament of Australia. 2001. Web. 1 February, 2012. Available at: Zhongying, Pang. Globalization vs. Economic Sovereignty. Yale Global. 2005. Web. 1 February, 2012. Available at: Read More