Globalism Effect On Global Interdependence

With the onset of globalization, trade barriers have diminished. This results in easier and faster transport of goods, and increase in foreign investments that create more job opportunities. In addition, the perpetuation of free trade reduces the possibility of beginning a war. However, let us be reminded that its economic pros are not universal and absolute. Although most benefit from it, unfortunate nations may still lag far behind. Furthermore, rich countries can take advantage of low wages, cause environmental damages to poor countries with limited pollution regulation and control, and impede home

Internationalism is a unifying force that has the power to impact every nation in the world and allow for their common good to be apprehended. Through ideal internationalism, political life can be regulated at the global level to construct a more peaceful structure. It has the potential to affect people in both positive and negative ways. Overcoming the difficulties that comes from executing internationalism is one of the key aspects of nationalism, it is up to the governing bodies to conquer it or not.

How does global trade make us more interdependent? Global trade makes us more interdependent by the impacts of finance, trade, investment, technology and migration. Also, economic, social and environmental impacts. They affect the formulation and implementation of policies at the national, regional and global levels. Among significant impacts is the reduction in the degree of national autonomy in policymaking and the resulting need to better harmonize national policy formulation with international obligations, commitments and compulsions.

It is also used to make some chemical products, such as detergents and paints. Every country in the world uses oil, however, many countries do not produce it. The top Countries that produce a large quantity of oil in the world include China, Saudi Arabia, United Stated, and Russia, and the top countries that consume tons of oil every day include China, Russia, United States, Japan, and Germany. Some studies showed that by 2039, the world might face oil crisis due to the current rate of oil consumption (Oilprice, 2009).

Middle East is strategically important region where mostly world half of oil reserves are located. Three countries: Saudi Arabia, Iran and United Arab Emirates accounted for 57% of total Middle East liquids fuels production. (Liquid fuels production in Middle Eastern and North African countries n.d.) Although due to increased domestic production of petroleum and natural gas, the United States is reducing its dependence on foreign oil with imported liquid fuels, but still oil means a lot to the US as oil prices is determined internationally by what is available for all global consumers. Therefore, to safeguard the security of Oil supply in the Middle East and ensure stable access to affordable oil is in the vital interest of the America. (Mexican crude oil shipments to Europe and Asia are rising as U.S. imports fall

Over the course of history, domestic politics have been shaped by international forces. Forces like war and trade; empire and colonies; migration and the spread of ideas. Globalization and Neoliberalism plays an important role in impacting politics in all states. “Globalization is a system in which human beings are no longer part of isolated communities that are linked through narrow channels of diplomatic relations of trade”(O’Neil,2017, pg.346). Globalization creates a division between international relations and domestic politics. When globalization makes a distinction, then the aspects of domestic politics are controlled by global forces. Globalization changes the  institutions of economics, politics, and society. The institutions are measure by space and time of social norms, culture, boundaries. The boundaries create a local identity and control (particularly-“state, religion, or set of cultural values holds sway over the land and here but not there.”)(O’Neil, 2015, pg.348).  Furthermore, political isolation becomes impossible to happen.

The 20th century brought with it a rapid expansion of the global interrelatedness of the world. In the beginning of the 20th century the world was dominated by a European world system of colonial empires that was created through expansion by sea (Findley, 2011). The competition between Britain and the other colonial powers led to an insatiable appetite to expand their empires across the globe (Findley, 2011). As the 20th century progressed this European world system collapsed and a new three world system of the United States, Soviet Union, and the rest of the world emerged (Findley, 2011). The end of the century coincided with a new era of globalization that was made possible by the introduction of global communication via the internet (Findley, 2011). This new technology brought the entire world closer together than it had ever been before. The four events that best illustrate the progression of global interrelatedness throughout the 20th century are the Great Depression, World War II, Cold War, and the introduction of instant global communications via the internet.

Prior to the beginning of World War I, the world economy was held up by four pillars: the gold standard, free trade, communication and transportation, and capital and labor labor mobility. After facing two world wars and a worldwide economic depression, economists and governments from around the world implemented several development strategies. Some strategists tried to rebuild the order from before World War I in a more flexible and stable way while others bucked the traditional world order all together in an attempt to develop more quickly. While import-substituting industrialization provided short term benefits and long-term problems to the nations that practiced it, the Bretton Woods System provided sustainable economic growth to

The benefits that arise from international trade can be derived from nations that have acquired trade power and established their revenue. According to Stanley, “nations with strong international trade have become prosperous and have power to control the world economy. The global trade can become one of the major contributors to the reduction of poverty.” Over the years, this type of trade has thrived as a result of the numerous benefits that come from importing and exporting good and service on a global scale, more specifically because of the increasing efficiency as well as the effects of supply and

oil is the world’s power leader fuel. The world now devours 85 million barrels of oil

Globalization builds good relationship between countries as they exchange products. Trade agreements like NAFTA, WTO, EU and ASEAN etc. are done to make the tie stronger and for the ease of trading with each other. It helps to avoid conflicts among countries, promotes understanding and goodwill.

International cooperation and trade were fostered under new economic liberalism model that merged the idea of free trade with state intervention. This system of “embedded liberalism” enabled the international trade through open market system while government could still intervene in constituting domestic economic policies to secure full employment and provide social welfare. Institutional frameworks in governing the global economy also emerged along with the refurbishment of the economic system. Bretton Woods Organizations were established to oversee the global economy and trade in this post-war economic order. The International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which would eventually become a subsidiary of the World Bank, were founded to regulate international monetary system by setting up fixed exchange rates for international free trade and providing loans for countries to restore their post-war economies as well as encourage their respective economic development. Meanwhile, the General Agreement on Trade and Tariffs (GATT) was formulated afterward to complement and regulate the international trade through multilateral negotiations of tariffs and protectionist policies in accordance with the embedded liberalism system. With these multilateral institutional frameworks and Keynesian model of protectionist policies intact, the global economy and trade flourished in this “Golden Age of Capitalism”

As technology of the past gives way to the technology of the future, the world is becoming a smaller and smaller place. In economic terms, Global Interdependence is increasing as time goes on. In other words, we as the United States, as well as other countries, rely on each other for the three factors of production, Land, Labor and Capital. As noted in Thomas L. Freidman’s book, The World is Flat, there are several instances in which the Global Interdependence started. For example, the introduction of the Internet created a common forum in which people could connect to each other instantly was revolutionary in the interdependence process. In addition, the Global Interdependence Center, located in Philadelphia, PA is a non-profit

Continuing on with the positive economic effects of globalization, the economy puts forward a net benefit to the individual economies around the world. It does so by making the markets more efficient, increasing the competition, as well as spreading wealth around the world on a more equal playing field so that all countries have some kind of reward. This makes all countries want to strive to do well and for their superiors to do well also. International trade benefits us by having foods all year round, cheaper products, and allows countries to focus on their strengths and trade for the things they can’t make cost effectively on their own.

Global interdependence never really crossed my mind when thinking about company’s and what they must go through. As I acquired knowledge about globalized companies in other classes, I never dove this deep into it like this class. Overall, this class has taught me a great deal about all aspects of a company from the management standpoint to the logistics that go into getting products to where they need to go. Global interdependence is a huge topic in every company and is a topic that must be perfectly in sync with the company’s beliefs to be successful overseas. Global interdependence includes changes, interconnectedness, and diversity.