Politics of Globalization - Essay Example

Running head: Politics of Globalization Insert         Insert Grade Insert 12 March Outline: Question Question 2 Question 3 Politics of Globalization Question 1. Compare and contrast globalization as understood and explained by corporations and other supporters on the political right with globalization as understood by anti-globalization opponents and critics on the political left. Globalization is defined as the process of increasing global relationships of people and economic activities through the reduction of trade barriers, which, in turn, lead to economic growth in both the developed and developing nations. Generally, globalization has several supporters and critics as well. Globalization has received a wide support from the political right wing. The United States can be said to be globalized as the movement of goods, services, and capital between borders is common in the United States. This has been influenced mainly by the reduced trade barriers and the advancing technology. In addition, the country has signed free trade agreement with 16 countries, resulting in zero tariffs for most goods. Needless to say, the presence of air transportation has made it easier to export and import perishable goods on time, while the Internet has enabled quick and effective international communication between trading companies. Moreover, the decrease in transportation costs has fostered trade, leading to more gains. Political conservatives in the United States emphasize that government regulation drags the economy behind, and as a result, they insist on a free market. The conservatives believe that creating freedom on how the market operates is the best solution (test item 2, p. 4). United States citizens are furious over the high unemployment rates in their country, as well as the deteriorating state of their economy. The increase in foreign inventory and trade deficit are blamed for the decrease in wages, decrease in incomes, and the exploitation of low income workers in developing nations. In addition, conservatives in the United States believe that government regulation affects the country’s economy, therefore recommending that the market should have the freedom to regulate itself. The conservatives argue that excessive government regulation leads to a crowd-out situation (test item 2, p.4). Globalization has also transformed the world, an issue that raises concern on the rising irregularities; for instance, illegal drug trade in Mexico, gang violence, human trafficking and the import of tainted drugs and food from foreign countries such as China. These are the negative effects of globalization, which could cost loss of innocent lives; Mendelson adds that the government should intervene through creating a balance in competition, and control globalization (test item 2, p. 3). In addition, the hunger for energy or natural resources leads to unfair competition, and global race, which may create instability of nations. Moreover, globalization can be viewed as a zero sum game, mainly because growth of jobs and opportunities in the fast developing nations like China makes them winners, while high levels of unemployment and poor living standards in some states like Indiana, in United States, result in such states being losers. In addition, globalization is said to create inequality among countries, as the developed nations continue to succeed, while the developing nations advance at a slower rate. This is blamed on the exploitation of poor workers locally by the developed nations, who gain from huge profits but pay the laborers poorly. Therefore, the neo-Marxist only views globalization as a source of inequality rather than an opportunity, which produces winners and losers (test item 7, p. 14). The anti-globalization activists advocate the removal of trade barriers, the ending of revitalization of public industries, opening industries to foreign investment and stiff competition, among other issues. However, the anti-globalization activists are not against globalization, but they insist on the direction it should operate in, as well as who it should benefit. Question 2. What explains the very different effects that globalization and world economic recession have had on U.S. households as compared to the effects that globalization and world economic recession have had on individual European households? The United States can be rated as globalized, which has been influenced by decrease in trade barriers, advanced technology, and international trade. However, “ all that glitters is not gold.” This is a famous proverb which is applicable to the fact that globalization has its challenges as well as benefits. Currently, the American citizens are worried about the increasing rates of unemployment and the bad shape of the economy (test item 1, p. 1). The United States and Europe are among the developed nations considered globalized, and as a result, the reduction in trade barriers is evident in these countries. This has fostered international trade, leading to massive gains, especially for the developed nations. In addition, globalization has led to increase in production in different countries. In the United States, globalization is currently being perceived as a drive to elimination of good jobs; however, they are also grateful to the new opportunities brought about by globalization such as online shopping, Internet, and free trade among other opportunities. The United States has faced the challenge of human trafficking and importing harmful foods and drug supplies as well; this is brought about by unsupervised globalization, which affects negatively the health of citizens. The American citizens have raised eyebrows on the rising rates of unemployment, which are resulting from continuous lay-offs. As a result, the wages have declined, while costs of commodities have increased. Therefore, corporations are only hiring low-cost labor in order to gain profits. The employed are worried about their job security, and therefore, the trends of inequality are evident in the country. Commerce department reports in America 2011 showed that companies had laid off 2.9 million employees, and only increased employment opportunities by 2.4 million, which was mainly low cost labor. As a result, the American households are likely to suffer from this change, especially in households where only one partner is the breadwinner. Such households are forced to cut on their expenses as their only means of survival. In Europe, globalization has impacted the households, both positively and negatively. First, as mentioned earlier, the problem of importing tainted food, which could be harmful for human consumption is a problem affecting Europe as well. Needless to say, globalization has led to the easy communication across boundaries via the Internet. Working from home is another achievement of globalization, which requires no office space, hence reducing on cost of rent, fuel, and time; all that is needed is Internet accessibility. International companies can hire personnel from other countries and maintain a good work relationship as well; this is also a new source of income for the unemployed. Economic recession contributes to increase in the rates of unemployment; these increasing levels of unemployment lead to low household income, and as a result, the levels of crime are likely to rise. A common crime in Europe is human trafficking; the offenders are mostly unemployed and seeking sources of incomes. Needless to say, when globalization creates new opportunities, income is higher and individuals can afford basic needs without straining much. However, recession can contribute to the low rates of savings in a country, and as a result, putting the future of a household at risk. Moreover, inequality in income distribution is among the challenges households face in Europe, hence creating a gap between the rich and the poor. Question 3. What is the greatest positive consequence of globalization?  What is the greatest negative consequence of globalization? How in your view can the effects of globalization in particular like the economy, security, trade, commerce, crime, etc. are better managed? Globalization has several positive effects, the main consequence being the transformation of the world, which has created many opportunities to individuals. The increasing interdependence of countries has fostered international trade by the reduction of trade barriers by countries. This has resulted in free trade, which has led to easier flow of goods, services, and communication; indeed, knowledge transfer has benefited the developing countries. These countries have adopted technology which has transformed their operations. Globalization is associated with negative consequences; for instance, the transformation brought about by globalization has been a source of concern globally. This is because irregularities in imports are evident, for example, the presence of tainted food from China imported by America and Europe is disturbing. Human trafficking is also a negative consequence of globalization. However, the major negative consequence falls in the inequality in income distribution among countries whereby the rich countries continue to thrive via exploiting the developing countries. As a result, the developing countries grow at a slower rate as opposed to the developed nations. Managing the effects of globalization Globalization is accompanied by both positive and negative effects; therefore, managing these effects can contribute to better results. First, it is important for the governments to ensure that imports are well supervised and electronically checked for any errors. As a result, sensitive goods such as imported foodstuff will be appropriate for human consumption. In addition, trade regulations that ensure security should not be scrapped off. It is important for a country to ensure that illegal arms are not shipped into the country for the security purpose of the nation, which can only prevail when crimes are not given an opportunity to occur. Countries that do not abide by the safe regulations, such as China, should be warned that trade relations will be barred between them and other countries. In addition, as the developed nations invest in developing countries, exploitation of workers should be barred, and these countries should abide by the host countries’ laws that indicate the minimum wage that should be paid. As a result, the developed nations will benefit from genuine profits, as the workers benefit from favorable incomes, which will improve their living conditions. Nevertheless, fair competition should be encouraged, and therefore, benefiting both developed and developing nations. This will improve the status of the developing nations. Knowledge transfer is a positive benefit of globalization; however, for knowledge to be successful, it must be well managed, and as a result, this knowledge will be effective in solving the negativities brought about by globalization. The spread of knowledge, especially to the developing countries, is capable of fighting crime through advanced technology. Needless to say, globalization contributes to the movement of people from one country to another; a vivid example is the relocation of medical personnel from India to the United Kingdom. As a result, India is less preferred by the medical graduates, who prefer greener pastures, leaving their country with insufficient medical personnel. The developing countries can solve such problems by providing appropriate facilities for employees as well as favorable incomes, which will avoid poaching of exemplary staff. Finally, the increase in carbon emissions is as a result of increase in production; this can arise from competition in international trade. However, the effects of carbon emissions are harsh to the atmosphere and should be avoided. Therefore, countries involved in international trade should sign the Kyoto protocol which enables them to be environmentally friendly. Therefore, globalization effects should be managed wisely in an attempt to embrace opportunities but resist negative effects. References Test items - (Attached document). Read More