Realist and Liberalist Perspectives of Globalization Essay examples

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Why and how did globalization occur? Different perspectives have different explanations as to why and how globalization evolved. Realists argue that international trade is most effective when there is hegemony in the world market, whereas liberalists believe that it is a matter of how countries use the idea of reciprocity in their decision about trade. I agree with the realist perspective because hegemony allows the global economy to enhance and international trade functions the best when a hegemon dominates the world market. Realist perspective explains globalization in terms of the relative distribution of power (Nau 2007, 278). In their opinion, trade and economic activities thrives “only under favorable security …show more content…
According to the hegemonic stability theory, “a hegemonic power is necessary to support a highly integrated world economy.” (Nau 2007, 280) Nau explains that as long as there is a relative distribution of power, no one power can affect the system as a whole (280). When there are several equally competitive countries, the global economy reaches the model of a perfect market. Each state acts according to their self-interest, and such behavior leads to higher gains for everyone because “competition maximizes efficiency” (Nau 2007, 280) in a perfect market. However, there is no place for violence in a perfect market because a hegemon assures security by deploying a police force (Nau 2007, 280). Since there is usually no such force in the international system, many competitive nations have to fear violence. This is what the realists meant when they stated that in the multipolar world, nations cannot be sure about alliances. In addition, the United States and the Soviet Union were the two great powers after World War II; thus, they developed an example of a bipolar world, in which there are separate and self-governing “half-world” economies that includes very little trade with each other (Nau 2007, 280).
On the other hand, liberalists emphasize “the technological change, specialization, trade and increasing interdependence, and the strengthening of global