Globalization and Its Impact on the United States - Essay Example

Globalization The paper deals with the detailed account of globalization and its impact on one of the most developed countries of the world, United States. The paper signifies the fact that how does the phenomenon of globalization is beneficial to the country and how does it provide certain limitations. Moreover, it also concludes if the phenomenon of globalization is good for the interest of the United States or not. The United States of America, like any other developed country of the world is the potential and strong supporter of globalization and imposing the process on many other countries. The fruits of globalization are very sweet for countries like United States however; the process of globalization renders certain negative impacts for United States as well. Globalization is the increased integration and engagement of countries across the world. Globalization is the phenomenon that depicts an on-going procedure that is linking and integrating the national economies, regional societies, different cultures, and people by an enormous and extensive mode of global communication and implementation (Bhagwati, pp. 11-13, 2004). The term globalization usually implies to the globalization of different economical countries. Economical globalization is a phenomenon where national or regional economies of different countries across the globe links together and desegregate into an international economy through various factors like international trade, investment abroad, monetary flows, migrating to other countries, effective communication, and technological advancement. The process of globalization as determined by its factors seems like an inevitable and unbeatable procession. However, the process of globalization has its own advantages and merits, and disadvantages and demerits. The benefits attained by the process of globalization for United States includes lesser trade limitations and constraints, and lowered regional restrictions in order to integrate with the economies of rest of the world. This phenomenon gives rise to the concept of international market, where the fruits are inevitable for developed countries like United States. The lesser limitations and barriers for international trade render the opportunity to open up trade markets around the world those results in increased trade of the country. This in turn, results in economical development caused by the functioning of international trade markets throughout the world (Bhagwati, pp. 14, 2004). Another benefit of the globalization is the increased capability of consuming and buying better products, goods, commodities, and services at relatively lower prices as compared to the prices of regional goods. This allows people to increase their quality of life that is a very significant factor in terms of prosperity of the country. Moreover, the prosperity of any country refers to its steady economical development. Therefore, the ability to buy and consume globally has deeply affected the economical development of USA in a very positive manner. Outsourcing is another biggest advantage induced by the phenomenon of globalization attained by the US economy. Outsourcing is a process where a company hires or recruits an employee or group of employees outside the regional boundaries in order to get the best talents of world work for it and to save the money as well. These two advantages of outsourcing are very significant in terms of economical development of the country. The breaking of boundaries in order to get the best minds around the world work for the company, allows the company to prosper like never before (Brewer, pp. 133-147, 2000). This results in an increased economical development of the country. Moreover, the wages paid to these outsourced employees can be less than the wages the company has to pay to the local or regional employees due to the difference in worth of currency. This allows different companies to invest the money saved from outsourcing in new projects and development of the existing projects. This also results in an exponential increase in development of economies of developed countries like USA. However, there are certain limitations caused by outsourcing as well. On one hand, the recruitment and hiring of people outside the borders provide certain benefits to organization, resulting in benefits to the economy of the United States. On the other hand, the preference of international employees over the local and domestic talents of the country gives rise to the decrease in employment opportunities for the locals. This decrement as a whole causes disastrous effects on the lives of local employees, which again puts considerable effects on the economy of the country, however, the major difference this time is the negative and declining rate of the economical development because of these negative effects. The biggest threats induced by globalization are the threat to national sovereignty and regional dignity. Globalization has made the culture and nationalism of United States to surrender the sense of dignity and nationalism in order to get the enormous benefits from the process of globalization. Globalization holds its root deep in the history as it is not a new process, nevertheless, the increased extent and exponential rate of progression of globalization is the new thing at present. At this point, it is necessary to calculate the impact of globalization in the regional policies of United States. The conception of national state is the fact that the state has it governance on a certain region, which is populated by people that contributes to their corporate and collected identity (Flora et al, pp. 12, 1999). The national state gives rise to the concept of dominancy while the concept of globalization nullifies the concept of nationalism. This neutralization of nationalism by globalization has its own merits and demerits. Nationalism is a phenomenon that presents contending images. On looking at the one side of story, it is evident that nationalism gives rise to the cohesiveness and strong bonding between the people sharing same national identities. However, the other side of story gives the other point of view that nationalism causes differences and conflicts with other national countries of the world. These differences hold their basis on the worldwide rivalry for resources. In past, the power and opportunity to have a control of any resource were the factors that were detrimental in having control over resources worldwide. However, the process of globalization has limited this conception as the international community links together and stands together enforcing the power to limit this national ideology. Hence, the process of globalization is trying to limit and tackle the damaging runaway power of nationalism and national forces. This is the benefit of the process of globalization in terms of nationalism. However, the process of globalization is disadvantageous to the conception of nationalism and regional sovereignty because of the fact that it acts as a roadblock to the development and growth offered by nationalism. For instance, the cultural diversity induced by the process of globalization tends to limit the development of a nation in sectors like space expedition, technological advancement, and other sectors followed as the national endeavor to attain relative excellence over other nations and national countries of the world. The results and consequences of decrease in nationalism and regional sovereignty caused by the phenomenon of globalization include the increment and rise of global and international terrorism. Moreover, the issue of global terrorism has given rise to other related issues such as ‘War against Terrorism’ and other issues happening due to the clash of globalization with nationalism of many countries. The inevitable truth of globalization is converting the world in a global village. The increment in communication has increased the linkage and interaction between people belonging to different civilizations and nations. This increment has greatly caused the increase in feelings of being different and consciousness about the critical points of civilization clash (Huntington, pp. 22-28, 1993). There is no denial to the enormous benefits caused by the phenomenon of globalization; however, there is no denial about the costs that the United States will incur. For instance, the cost and price of the endeavor and struggle of war against terrorism in different countries like Afghanistan and Iraq has greatly affect the economical development of the United States. The reason behind this is the fact that the overall consumptions and expending kept on increasing while the sources of income were more or less the same. Moreover, there is a lot beyond the discussion of costs suffered by United States in monetary terms (Brewer, pp. 111-120, 2000). There is not even an estimate of the costs that the United States has suffered due to the lost of uncountable lives in these struggles and endeavors. These economical and human losses have induced severe, substantial, and certain effects on the overall economical development of the country. However, the advantages of globalizations are crystal clear due to the positive manner the process of globalization affects the regional policy and domestic strategies of America. In United States, the economical advantages and merits offered by the process of globalization results in development, growth, and success of the country and its nation in terms of increased trade, global help, more investment opportunities, and technological revolutions. These factors have substantial and important regional and worldwide effect on the United States (Wenar, pp. 122, 2003). However, this setup of domestic policy results in the decreased opportunities of the above-mentioned factors for the local and domestic people. For developed and wealthy countries like USA, the process of globalizations holds more advantages as compared to other counties. The phenomenon of globalization has induced lesser trade constraints; moreover, it has given rise to economical interactions around the world. Globalization has led to an efficient and effective increase in communicational capabilities between organizations across the globe (Bhagwati, pp. 23-25, 2004). All these fruits offered by globalization have increased the development of US economy rapidly. Nevertheless, these economical benefits have lost their increased significance as soon as the United States started suffering from an enormous trade shortage. The United States is now functioning under the pressure and burden of this monumental shortage of trade. The conception about United States has evolved from the one of the greatest economies to an enormous and vast market of goods, products, commodities, and services. In order to manage local investment (as in late 90’s) or to finance the administrative adopting (as at the start of 21st century), the United States in now standing at the point where she has to bank greatly on outside and international contribution (Brewer, pp. 117-123, 2000). The widening of current account shortage of United States has exponentially increased its resultant international financial obligations. It is evident from the fact that even in United States, that has the highest strength and greatest opportunities to attain benefits and advantages from the phenomenon of globalization, the disadvantages imposed by the modern process of globalization outclass the advantages induced by the phenomenon. In addition, the situation would be the same as long as the international economical conditions persist to leave the outcomes of resultant trade shortage for the US. As a result, the domestic strategy and regional policy of the United States will bear these consequences. In addition to the suffering there are other damages caused by the struggles against terrorism, an offshoot of globalization. Enormous amount of monetary fund undergoes consumption due to security issues. A number of companies and organization in the United States functioning in international market have to face the challenges of increased costs and expenditures in order to manage and resolve security issues. Moreover, the companies and organizations involved in international trade have to confront other issues like enormous risk attached to the failing of deal and other related concerns, the delays caused by international shipment, and other related issues. The increased security issues in the country has given rise to the necessity of adding new and strict technologies as to get a more secured environment like never before (Sparshott, pp. 46-51, 2003). To end or obstruct the globalization in order to counter the negative effects of this phenomenon on the countries’ economical development is almost impossible. The need of the time is to accept the benefits offered by globalization with open heart and to prepare to face the challenges induced by negative effects of globalization. The phenomenon of globalization is most likely to continue at every cost as the technological advancement would continue to bridge the gaps between different nations. As a result, the national is most likely to bear more consequences. There is no way out to escape from the negative effects of globalization on the United States. However, as the most prominent economy of the world, the United States is most likely to continue the benefits and advantages offered by globalization provided the United States also understands the complication induced by the phenomenon. Globalization induces benefits for the Unites States and so it offers certain limitations and shortcomings as well. However, in the end, the phenomenon of globalization is good but not perfect for the interests and considerations of the United States. However, a balance must exist between the escalating effects of globalization and national interests of the United States. The country has to accept the balanced globalization in order to maintain its status as super power in the world. Uncontrolled globalization results in a devastating and disastrous threat to the concepts of nationalism, domestic strategies, and local policies of the country. In short, United States must follow globalization and accept it, in order to give rise to the national benefits, and for the cause of the phenomenon itself. References Bhagwati, Jagdish. (2004). In Defense of Globalization. Oxford University Press. p. 14. Brewer, Thomas L. (2000). Globalizing America. Edward Elgar Publishing. Flora, Peter. Kuhnle, Stein and Urwin, Derek. (1999). State Formation, Nation-Building, and Mass Politics in Europe. Oxford University. Huntington, Samuel. (1993). "The Clash of Civilizations" Foreign Affairs. Volume 72, Issue 3, pp. 22-28. Sparshott, Jeffrey. (2003). "Terror to Take Toll on Trade." The Washington Times. Issue of March 21, 2005. Wenar, Leif. (2003). "One World: The Ethics of Globalization." Ethics & International Affairs. Volume 17, Issue 2, pp. 122. Read More