Want help to write your Essay or Assignments? Click here
Globalization Effects on the International System
PART II
Introduction
Globalization refers to an approach that engages people, business entities, companies and governments from different regions in freely interacting with each other in an effective manner. It is essential to consider the fact that the element of interaction between people from different regions is enhanced by particular parameters that are an international system. These parameters include information technology, international trade, infrastructures, engagement in business activities, the ideal of exploiting different resources from various regions and social media (Mehrabanfar, 2015).
These factors therefore remain the main elements that drive people from different contexts to cross borders with the sole aim of engaging in activities geared towards the promotion of a common approach to life. The second part of this paper therefore seeks to determine the manner in which globalization affects the key actors of an international system.
In particularly, this essay examines the way in which globalization affects the main actors in the international system. The essay does so through analysis and critique of the subject matter and not just by describing the topic, as well as through the use of pertinent real-life examples in illustrating the arguments made in the essay. Some of the key actors in the international system as far as globalization is concerned include people, national governments and multinational corporations that have their business operations in multiple countries globally.
This essay also explores the topic further by analyzing the impacts and implications of globalization on different countries globally. Globalization as evident in the present day has largely been driven by policies implemented by countries in the international system which have served to open economies internationally as well as domestically (Zhang, 2015).
A lot of countries have espoused free-market economic systems that have significantly enhanced their productive potential and brought a wide range of opportunities for global trade and investment. In addition, countries have negotiated considerable decreases in barriers to trade and have created transnational agreements that are aimed at promoting trade in services, goods as well as investment. This essay will also clearly describe how this is affecting the main actors in the international system in globalization today.
Want help to write your Essay or Assignments? Click here
How Globalisation Affects the Key Actors in the International System
According to Mehrabanfar (2015), the process of globalization has been determined to influence different human development, cultures, and environments, including political and economic systems. It is essential to understand the process of globalization and its effects on the key actors within an international system. This gives a clear depiction of the manner in which the world is constructed by several changes in the social and economic lives of people (PP.24).
In this, it is therefore essential to determine that globalization is a powerful tool that enhances the course of the new worlds systems that represent the forces that are responsible describing the future of the planet. Globalization is in this case concerned with the economic, political, environmental, security, culture and health of different nations with emphasis placed in the status of different states (Qureshi & Jalbani, 2014).
It is however significant to consider that there are scholars who have different reactions in the interpretation of globalization, a factor that has seen some policy makers considering globalization as an essential element in the advancement of the world’s economy while other believe that this element places negative energy and serious danger upon the world’s economic systems (Baylis, John & Steve, 2001). In as much as globalization can be viewed as a contributor of conflicts, it has several benefits both at the state and individual levels.
Many observers allege that globalization is accelerating with these factors prevalent in the manner in which similar cultural practices have been created and the uniformity of markets. It is therefore important to consider that globalization effects are very strong that they undermine the powers of international and national governance (Popa, 2014).
This element therefore assumes that societies are strongly connected in this dispensation as compared to the past and that change emanates from a single center that is then radiated outward through a uni-directional fashion (Nederveen, & Dasgupta, 2009).
Want help to write your Essay or Assignments? Click here
Impacts of Globalisation
There are several effects that emerge from globalization which impacts different economies of the world. The production of goods and services is affected by different elements of globalization. This has also seen the development of different approaches of production such as capital and other inputs and labor that are primarily dependent on the levels of globalization.
Additionally, competitiveness as seen in producing a good or service has resulted in the diffusion of technology that has resulted in the initiation of nations to other developed cities (Gaur, 2015). Having considered this, globalization is therefore ascribed as the force behind the efficiencies that have been experienced in affecting investment opportunities of different organizations within different nations and markets.
Investments are known to play a central role in technological transfer, formation of global investment and in industrial restructuring which have an effect in the national level (Luković, 2015). New technological advancements in different economies additionally remain an essential factor in globalization that stimulate competition and enhances the diffusion of nations through foreign direct investments.
Want help to write your Essay or Assignments? Click here
International Commercial Transactions
One of the implications of globalization is increased rise of international commercial transactions that have opened opportunities for cross border trade on both small and large scale. Over the past, it is essential to consider that it was challenging to find developed economies engaging in trade with the developing countries. This was centrally because different economies were considered as superior to others, a factor that saw this economies gain big percentages in trade.
According to Francioni, Musso and Vardiabasis (2013), the manner in which organizations engage in international commercial transactions as that has seen the inclusion of electronic buying and selling depicts the manner in which globalization has affected trade in the entire world, a factor that depicts the impact of globalization (PP.240).
It is therefore essential to note that the perception of international commercial transactions also known as international trade can be viewed as an approach that offers a variety of business services to different market on both a small and large scale (Bourguignon, 2016). This concept has therefore been changed with the advent of technological developments, availability of social media, infrastructural development including the development of information communication technologies.
This has therefore transformed the manner in which people conduct their business functions and other affairs that relate to trade (Vadlamannati, 2015). Improvements in the way individuals move from one area to the other have also been enhanced by globalization, a factor that has seen the elimination of various barriers in the market.
Globalization as detailed by Faulconbridge (2008) has provided a clear guideline in the manner in which people from different regions integrate across different markets with each other through the development of an established law system also known as commercial law (PP.185). This according to the author depicts the fact that there are procedural laws that have been created as a result of globalization that regulate the levels people can interact for the sole purpose of ensuring that safety and the protection of the wellbeing of these parties that engage in international and commercial transactions are adhered to the latter.
Want help to write your Essay or Assignments? Click here
It is however essential to consider that Williams and Martinez (2012) believe that this approach does not create the element of free trade since it provides some restrictions through the developed laws that hinder international commercial trade to occur.
In as much as the element of commercial law remains paramount in regulating trade, it is essential to consider the fact that free trade opens different boarders that allows trade interactions and different activities that promote these practices (PP.79). In my view, I however believe that commercial laws are essential since they specify certain activities that promote trade and the manner in which individuals interact in this process.
States have additionally turned out to be interdependent through the implementation of free-trade that has seen the opening of national boarders for the purposes of trade. As a result of globalization, companies now have an easier way of setting up branches and different production sites in other nations where the market conditions remain favorable for a company (Westermann, Rehbein, & Fort, 2015).
However, it is significant to consider the fact that these have seen an increase in competition between different nations considering the fact that each of them would want such establishments made in their own economies. The element of free-trade has therefore seen countries turn out to be dependent on one another in order to present attractive markets for multinational corporations that seek to expand their operations in different markets.
Free-trade was to develop market conditions that would define the manner in which different states would conduct trade freely and with the presentation of equal opportunities with other states (Andreeska, 2015). However, the achievement of this objective was met by different reactions that alluded to the fact that such terms may not favor all nations in an equitable manner. This is because some nations had the capacity to export cheaper raw materials and labor as compared to others and are likely to be trade-partners.
Want help to write your Essay or Assignments? Click here
In this case, some countries needed to implement quotas and tariffs to protect their national economies in dealing with this element. This has therefore seen several states affected by other states tariffs and quotas in effectively trading in the markets (Seitan, 2014). This therefore implies that some states may not be in a position to trade particular goods with other countries considering the fact that meeting these requirement’s may turn out to be detrimental to their functions.
Globalization has in this contemporary time made international trade easier by incorporating online business transactions, a factor that has made it simpler for people to transact (Schelhase, 2008). Commercial laws have therefore been enhanced to cover several aspects within the business spectrum that involves the transfer of funds, accounting, marketing, operational management, book keeping and sales.
It is however essential to consider that the undeveloped nations that may not have access to internet as a result of various factors such as the lack of resources and underdevelopment also have the opportunity to interact with the traders from different regions through enhanced approaches of movement that involve different transport modes (Castro Pereira, 2015). These modes have therefore made movement. Globalization has impacted the transport modes with this making it easier to move from one region to the other without difficulties a factor that impacts international trade.
It is also essential to determine that an essential role was also played when various Inter-Government entities (IGOs) gained significance in the element of globalization. Before the advent of globalization, several states were in pursuit of approaches aimed at promoting their national interests. This therefore saw states primarily concerned with their own interests and safety that developing a global approach to security (Antonelli, & Fassio, 2016). This clearly indicates that states were primarily concerned with their own ways of dealing with their problems at a state level rather than inn an international level.
Want help to write your Essay or Assignments? Click here
Currently, it is essential to establish that issues and challenges have escalated with these affecting states on a global level, a factor that has seen several states unable to protect its citizens (Schelhase, 2008). States have therefore been incapacitated in dealing with these issues by their own means, with this therefore requiring the development of collective action plans with other states through the IGOs.
Through a joint effort, states are in a position to relinquish their sovereignty to a single body that collectively manages the decisions of other member-states (Taylor, et.al.2014). It is essential to consider that these joined sovereignty never existed, a factor that gives the impression that states are obligated to comply with the laid down decisions by the majorities and are in most times affected by such actions considering that this may be against their governance approaches.
States therefore depend upon the aid of other nations who are partisans of the decision making process with the aim of achieving their goals as depicted in the case of UN Security Council. This entity therefore ensures that member states needing to pass resolutions depend on their parameters (Kilic, 2015). Considering the fact that this entity holds veto-powers, they have the capacity to stop a state’s resolution even in the event that these resolutions are passed in their favor.
Another implication that has been noted in these IGOs and the manner in which they relate with members-states remains in the laid down obligations to act under defined circumstances (Verma, & Singh, 2010). In accordance to this, member states of NATO as agreed under Article 5 of the North Atlantic Treaty who lodge armed attacks against other states that reside within North America or Europe are bound to have an attack against them.
Want help to write your Essay or Assignments? Click here
It is also passed that in the event of such armed attacks each of the member-states in exercise of the rights accorded to them recognized by Article 51 of the Charter as described by the United Nations will take full responsibility in assisting the parties affected by taking part in actions as deemed fit that include the use of their forces in order to restore and ensure the security of such a nation (Bassens, & van Meeteren, 2015).
With this example it is therefore essential to note the manner in which member states belonging to NATO remain dependent on one another and are in most cases affected by the happenings in other member states (Bassens, & van Meeteren, 2015). This therefore ensures that the United States of America is required as described under Article 5 of this treaty to send its military forces to assist the European member states when attacks are lodged against them in as much as the US has nothing to do with the issues that arise and are not closer to the attacked states in any way.
This factor therefore implies the fact that in this contemporary society, events have turned out to be borderless, placeless and distancless, a factor that ascertains the fact that states remain unaffected by issues that arise in other nations but may be affected in a way (James, & Steger, 2014).
Another element that can be noted in the manner in which smaller numbers of nations my impact the whole world is in relation to the Organization of Petroleum Exporting Countries (OPEC). In the year 1970, OPEC raised the prices of oil considerably which affected many countries in the world. During this period, OPEC only had 12 member states with their decisions held intact with more states.
Want help to write your Essay or Assignments? Click here
It is also essential to consider the fact that it is not only IGOs and other member states that increase the dependence of other states on others. A Trans-border trade connection that occurs between different locations in different nations has also seen a similar impact as a result of globalization. It is therefore critical to determine that the developed bodies that are given the mandate of run these connections are the makers of decisions with their constituent regions taking the required actions which then impact the manner in which these systems are run globally (James, & Steger, 2014).
This has seen the development of regulatory bodies such as the Assembly of European Regions and the European Union’s Committee of the Regions that influence the manner in which trade is conducted in member-regions. This has therefore seen states turn out to be independent not by their own actions but due to the regions that form part of a regional organization.
On the other hand, it is also significant to note that another development that has been spurred by the element of globalization is in relation with the interconnections of different states within the modern international systems (Schaeffer, 2009).
This has therefore seen the unity of private sector institutions and other entities such as the International Federation of Stock and Exchange that were incorporated in 1961 with the sole purpose of making decision and taking the required actions in addressing issues such as food pricing and credit rates that have significantly impacted different economies over the world.
It is also important to consider the element of fusion of national capital markets and the development of integrated global economies as another factor that is augmented by globalization in the development of interdependent states (Schaeffer, 2009).
Considering the fact that states do not have control over their own economies, it is essential to point out that they primarily rely on a collective approach to governance by different bodies for instance International Monetary Fund (IMF) and the World Bank so as to develop effective approaches of regulating the international financial markets.
These dependencies have seen different member-states provided with protection in an even where their economies are troubled with financial difficulties. It is therefore essential to consider the fact that the element of interconnectedness may also have its negative effects as this can be determined in the recent economic crisis (James, & Steger, 2014).
This therefore gives an impression of the fact that the advent of a global economy may increase the risks of states being affected by different issues which may begin in a single country and stretch to different nations with this affecting the manner in which functions are conducted. Additionally, a countries economy may also be affected as a result of this crisis.
Want help to write your Essay or Assignments? Click here
It is therefore essential to determine that the element of globalization has overally impacted the international systems in a significant way by making states turn out to be interconnected through trade and independent. This therefore determines the fact that this contemporary society is not concerned with the independence of a single state but takes a collective responsibility in uniting the whole states for different purposes (Nederveen, & Dasgupta, 2009).
The issues that affect different nations are therefore solved through a collective approach rather than the engagement of individual states in finding solutions to those issues. It is significant to point out to the fact that intergovernmental organizations, global financial institutions, and the private sector organizations are the products of globalization and take the roles of solving the challenges that different economies and nations face in the development of a global market.
Conclusion
Globalization refers to an approach that engages people, business entities, companies and governments from different regions in freely interacting with each other in an effective manner. It is essential to consider the fact that the element of interaction between people from different regions is enhanced by particular parameters that include information technology, international trade, infrastructures, engagement in business activities.
The ideal of exploiting different resources from various regions and social media.it is therefore imperative to consider the fact that one of the implications of globalization is in its increased rise of international commercial transactions that have opened opportunities for cross border trade on both small and large scale.
Over the past, it is essential to consider that it was challenging to find developed economies engaging in trade with the developing countries. Globalization has therefore seen States turning out to be interdependent through the implementation of free-trade that has enhanced the opening of national boarders for the purposes of trade (Nederveen, & Dasgupta, 2009).
As a result of globalization, companies now have an easier way of setting up branches and different production sites in other nations where the market conditions remain favorable for a company. Additionally, globalization has also in this contemporary time made international trade easier by incorporating online business transactions, a factor that has made it simpler for people to transact.
Want help to write your Essay or Assignments? Click here
References
Andreeska, I. (2015). The Effect of Globalization to the World Poverty and Economic Inequality. Journal of Sustainable Development (1857-8519), 5(13), 5-15.
Antonelli, C., & Fassio, C. (2016). Globalization and the Knowledge-Driven Economy. Economic Development Quarterly, 30(1), 3-14. doi:10.1177/0891242415617239
Bassens, D., & van Meeteren, M. (2015). World cities under conditions of financialized globalization. Progress In Human Geography, 39(6), 752-775. doi:10.1177/0309132514558441
Bourguignon, F. (2016). Inequality and Globalization. Foreign Affairs, 95(1), 11-15.
Castro Pereira, J. (2015). Environmental issues and international relations, a new global (dis)order — the role of International Relations in promoting a concerted international system. Revista Brasileira De Political Internacional, 58(1), 191-209. doi:10.1590/0034-7329201500110
Francioni, B., Musso, F., & Vardiabasis, D. (2013). Key decisions and changes in internationalization strategies: The case of smaller firms. Journal of Strategic Marketing, 21(3), 240-259. doi:10.1080/0965254X.2013.790466
Gaur, A. (2015). Impact of Globalization on Trade and Employment. International Journal Of Multidisciplinary Approach & Studies, 2(5), 110-113.
Kilic, C. (2015). Effects of Globalization on Economic Growth: Panel Data Analysis for Developing Countries. Economic Insights – Trends & Challenges, 67(1), 1-11.
Luković, S. (2015). The Impact of Globalization on the Characteristics of European Countries’ Tax Systems. Ekonomski Anali / Economic Annals, 60(206), 117-139. doi:10.2298/EKA1506117L
Mcnally, C. A. (2013). How Emerging Forms of Capitalism Are Changing the Global Economic Order. Asia pacific Issues, (107), 1-8.
Mehrabanfar, E. (2015). Globalization Streams in Futures Studies. Informatica Economica, 19(3), 96-106. doi:10.12948/issn14531305/19.3.2015.09
Nederveen Pieterse, J., & Dasgupta, S. (2009). Politics of Globalization. Los Angeles: SAGE Publications India Pvt., Ltd.
Popa, F. (2014). The Inference of Globalization from the Regionalization Process. Economics, Management & Financial Markets, 9(4), 486-493.
Qureshi, J. A., & Jalbani, A. A. (2014). The Puzzle of Mainstream and Deviant Globalization. IBA Business Review, 9(2), 106-118.
Schaeffer, R. K. (2009). Understanding Globalization : The Social Consequences of Political, Economic, and Environmental Change. Lanham, Md: Rowman & Littlefield Publishers
Schelhase, M. (2008). Globalization, Regionalization and Business: Conflict, Convergence and Influence. Basingstoke [England]: Palgrave Macmillan.
Seitan, S. (2014). Problems of the Impact which Globalization Has on the Macroeconomic Balance. Economic Insights – Trends & Challenges, 66(3), 49-57.
Taylor, P. J., Hoyler, M., Pain, K., & Vinciguerra, S. (2014). Extensive and Intensive Globalizations: Explicating the Low Connectivity Puzzle Of U.S. Cities Using A City-Dyad Analysis. Journal of Urban Affairs, 36(5), 876-890. doi:10.1111/juaf.12077
Vadlamannati, K. C. (2015). Rewards of (Dis) Integration: Economic, Social, and Political Globalization and Freedom of Association and Collective Bargaining Rights of Workers in Developing Countries. Industrial & Labor Relations Review, 68(1), 3-27. doi:10.1177/0019793914555851
Verma, S., & Singh, P. (2010). Organizing and Managing in the Era of Globalization. New Delhi, India: SAGE Publications India Pvt., Ltd.
Zhang, C. (2015). The Effect of Globalization on Inflation in New Emerging Markets. Emerging Markets Finance & Trade, 51(5), 1021-1033. doi:10.1080/1540496X.2015.1039894
Want help to write your Essay or Assignments? Click here
