Political science - Research Paper Example

ossible for hyperglobalization to be fully-embraced by countries without negative consequences.This is because one way or another, there will always be clauses within international policies set by the WTO that can either be beneficial or detrimental to a country’s growth, of which it may be impossible to fully change or circumvent these policies in the country’s favor. In turn, the government has to choose between following the international policy at the cost of the economy and of the local market, or be subject to the sanctions imposed to countries when these are unable to comply with international standards.

Either way, unless governments are able to strike a balance between smart globalization and national democracy, it can be expected that local and international trade policies will always clash, and the government and its economy will bear the burden of its effects. Issues on hyperglobalization arose from incompatibilities between national interest and of international policy implementation. The issues that arose from Argentina’s economic problems in the 1990’s were able to capture the essence of the inherent incompatibility of hyperglobalization with national democracy, wherein the over-reliance of politicians to “tried-and-tested” methods of maintaining economic growth became its downfall upon the crash of the Asian markets and the devaluation of neighboring Brazil’s currency(185).

Due to the reluctance of some politicians to change economic and trade laws that were considered obsolete even by then-standards, the crises that came about and resulted to the overvaluation of the Argentinian peso with respect to other neighboring countries made investments less profitable. This caused a large amount of capital to be pulled out from the country, which in turn cascaded into wider panic among citizens as more and more people pulled out their money from financial institutions and essentially reduced the monies circulating and fueling the economy. The