USA and Challenges of Globalization - Assignment Example

Globalization Challenges for the US Question Appraise the major challenges faced by the United s as the result of globalization. Nowadays, it is pretty difficult to find an issue that would be surrounded by more attention and public response that globalization. This topic has become an issue of controversy and international concern with hundreds of conferences, articles, books and researches focusing their attention on it. Globalization is defined as a process of global economic, political and cultural integration presupposing creation of the unified network market economy, spreading of capitalism across the world and close interaction between the states. Its origins can be traced as fare back s to the 12th and 13th centuries when developing capitalistic relations encouraged unification of European economy, and East India Company became the very first international trade company. The 19th century dominated by the vigorous process of industrialization contributed much to globalization, but, however, it was slowed down by the Great Depression in 1930s. Having sparked with the new vigor after the World War II, globalization produces immense impact on our modern world. However, this phenomenon is systemic and can be observed both as favorable and as challenge-imposing process as its effect on the economy and culture of certain countries is multifaceted with pluses and minuses. Keeping this in mind, we will consider the challenges globalization poses for the United States. USA and Challenges of Globalization The US involvement into European affairs occurred after the World War I giving rise to a principally new stage of globalization, and this process was catalyzed after the World War II with USA’s decision to abandon the isolationist policy for good and connects its development trajectory with international affairs. However, globalization offers numerous challenges for all the countries involved into it varying only sometimes due to states’ specifics, stage of development, extent of influence in the international arena. The challenges posed by this “extreme form of interdependence” as Kirshner called it1 refer to various spheres of life. Generally, the main challenges global community faces in terms of globalization are issues of power, environment and culture. Challenges the US faces can be probably divided into general (i.e. faced by all the globalizers) and specific, typical for America as a kind of an outstanding power state. One of the general issues faced by all the global community being on the way of vigorous integration is environment. Being a burning issue of nowadays, environment requires attention of all the globalizers and the most developed and industrialized states in particular. Industrialization an globalization processes have proved to produce rather unfavorable effect on the state of environment increasing levels of water, air and soil pollution, littering, deforestation and animal extinction as well as triggering the notorious greenhouse effect. These consequences are often a result of offshoring when mighty world’s companies extend their production capacities abroad placing their subsidiaries in the “new globalizers”, developing countries which tread on the way of globalization. Therefore, what helps to expand sales of the company abroad and reduce poverty in developing countries, might also be the reason of environmental disaster in the long perspective. USA as one of the world’s mightiest economies tends to relocate production capacities of the companies all over the world granting special attention to developing countries like Vietnam, Bangladesh, Philippines etc. However, the effect of mass industrialization conducted abroad and involvement of new globalizers into the network of manufactures should be considered. Moving forward, it is necessary to touch upon the issue of power balance. Many researchers talk of the shift in power balance as one of the effects of globalization2. The United States have been enjoying a kind of a special place in the global arena because of being probably the mightiest superpower in the world, and its influence have only been increasing over decades since the World War II. Nowadays, USA has much economic, political and cultural influence in the world. However, this special status offers not only benefits, but challenges, too. Despite of all its strength, America is now “encroached by the process of globalization and finds more resistance in the world” as one of the most powerful states3. Moreover, greater power lead to greater liability, hence USA faces high expectations in the international society. Another challenge faced by the US is the issue of culture and difficulties the “melting pot” culture imposes. As far as globalization presupposes growing flux of migration, this has become a considerable challenge for The United States as it has been the main destination of migrants from the developing countries seeking either job or refuge. On one hand, influx of migrants offers Americans various opportunities of employing them and enjoying labor force that is cheaper than that of Americans. Naturally, this benefits small and medium business increasing the flow of money to the budget. However, growing number of immigrants - as a result of globalization and America’s “openness” for the world - causes increase in unemployment and hence poverty rates among local population. Moreover, unemployment rate may temporary increase with the waves of offshoring and capacities’ relocation to other countries4. Keeping this in mind, one can conclude that American labor market faces considerable difficulties coming from these two sources due to globalization. To add more to the issue of migration flow, one must also mention that increasing influx of immigrants (especially from marginal countries) might add to crime rate and impair national security. Frankly speaking, growing terrorist threat with its most atrocious manifestation of 9/11 is also the inevitable side effect of globalization. Talking about cultural challenges arising in the process of globalization, primarily the US faces the same challenge all other states do – the necessity to preserve the authentic culture and heritage without completely diffusing it in the panoply of cultures brought to the country by representatives of other nations. As it was stated in TIBRD’s report, cultural challenges are reflected in the greater cultural diversity and the danger of original culture displacement by the cultures of the newcomers. The former is the relevant issue for the United States as – being one of the most open economies – it hosts a great number of immigrants with wide variety of cultures. However, this might give rise to cross-cultural conflicts inside the US. To add more, another threat comes from the Islamic world being manifested through the terrorist threat and Islamists radical factions. Question 2: Analyze whether globalization a threat to U.S. supremacy and power in the world and how policy-makers can manage the situation. Globalization offers new development perspectives to the less developed countries as well as opportunities for business expanding for more developed states. Rich countries build up their fortune giving developing countries an opportunity to progress. The new way of strategic planning enables more stable relations between countries: the new way of labor force and production capabilities distribution encourages large companies owned by either national or international companies to produce parts of the products rather than whole products5 (this especially concerns industry on a large scale). Such strategy is thought to contribute to peacekeeping and more considered and elaborate diplomacy, making world’s powers interdependent. In this background, the US still keeps its special place in the arena. However, globalization is a considerable threat to its privileged status for many reasons. As it was mentioned above, globalization presupposes shift in power balance – of course, usually those countries which have power might become even more powerful, but nevertheless, placing their production capacities and subsidiaries around the world (in underdeveloped or less developed countries) and encouraging the process of globalization, world-s powers impose numerous hidden dangers on themselves. As the TIBRD report states, the shift in power balance triggered by globalization might be unfavorable for powerful states6. The threat comes from the less developed countries that gain much power and economic strength through offshoring and outsourcing from the most developed states – these countries are becoming more and more economically competitive that rises concerns among the world’s existing superpowers. For instance, such countries like India and China have been acquiring all the more power and influence – especially China. Having a bulk of hardworking people engaged in collectivist culture and being a host for numerous production capacities of large US and other companies (for example, Banana Republic, Colgate-Palmolive, Nestle, Walmart, Coca Cola Foods etc.), China has managed to become an ambitious nation dominating a considerable share of the planet. At the same time, China is a threat for America only in terms of economy. However, there is a more optimistic perspective of viewing globalization’s effect for the US. Free trade zone, international exchange in terms of qualified labor force, primary commodities, and cultural exchange should be view positively. The United States as a superpower dominating the world’s affairs nowadays could, in fact, face only economic threat to its dominance. At the same time, in all other aspects, USA remains the most influential state promoting and spreading its peculiar philosophy and model of behavior incorporated in the concept of the Western culture. Thus, using its international influence, USA promotes its values, democratic model, and cultural influence all over the world and has no rivals on the current stage of the society’s development. In the course of globalization, low trade barriers and transporting costs, intensive capital migration flows between the countries take place7. At the same time, powerful countries tend to create new barriers for products of the poor countries – this seems to be a means of inhibition of their economic growth and ensuring rich countries’ supremacy in the global arena. On one hand, it should be possible for the policy-makers to maintain such barriers walling America off the influx of goods and labor force from other states. But, taking into account that USA is generally the very source of globalization, it would hardly be possible. At the same time, taking into account the threats stated above, the US government should probably reconsider the migration and national security policy in order to reduce terrorist threat and crime rate among immigrants to minimum – as demonstration of USA’s high vulnerability could impair its authority and reputation in the international arena. As for the rest, globalization is a rather favorable process for the US as the world’s superpower. Though having lost a part of economic priority to the countries that are strengthening their positions in the world’s economy, the US is sure to remain a leading power in the global society as it produces the lion’s share of attributes of the modern culture. In fact, globalization is often used as a synonym for americanization: there are plenty of spheres in which America holds firmly its dominating place. To provide an example, we could think of Hollywood cinematography that is the undisputed leader in the world, and the standards and ideals cultivated in American cinema are a powerful tool of influence on the rest of the world. At the same time, USA still has great potential to develop in technology and science which needs to be taken into account. References: Görg, Holger, “Globalization, offshoring and jobs by Holger Görg” in Making Globalization Socially Sustainable, p. 21-31. Accessed September 23, 2014. http://www.ilo.org/global/publications/ilo-bookstore/order-online/books/WCMS_144904/lang--en/index.htm Kirshner, Jonathan, “Globalization, American Power, and International Security”, Political Science Quarterly, Vol. 123 (Fall 2008), p. 363–389. Accessed September 23, 2014. http://onlinelibrary.wiley.com/doi/10.1002/j.1538-165X.2008.tb00628.x/abstract TIBRD. A World Bank Policy Research Report. Globalization, Growth and Poverty. Last modified January 31, 2002. Accessed September 23, 2014. http://econ.worldbank.org/external/default/main?pagePK=64165259&theSitePK=475520&piPK=64165421&menuPK=64166093&entityID=000094946_0202020411335 Gholz, Eugene, "Globalization, Systems Integration, and the Future of Great Power War," Security Studies, Vol. 16, No. 4 (Winter 2007-08), pp. 615-36. Read More