To What Extent Can National Governments Influence the Outcomes of Economic Globalization? Discuss with Examples?

Deardorff (2001) stated that, direct foreign investments refer to the particular countries and kinds of countries toward which a country's exports are sent, and from which its imports are brought, in contrast to the commodity composition of its exports and imports. Besides, direct foreign investments also can be defined as the situation in which a foreign investor owns10% or more of the ordinary shares or voting power of a local company. Thus, the pattern that the direct foreign investments follow is that of a bilateral trade.

Commentators contend that globalization has disintegrated national sway and has brought about an exchange of force from states to enterprises or to universal associations. Since the late 1970s, there has been a developing acknowledgment of a belief system, frequently called "globalism," that supports an open market and constrained government impedance in capital and exchange streams. Corporate hobbies have driven this motivation, which they have forced, the faultfinders contend, on the creating

While many domestic institutions play an important role in the globalization process, describe three fundamental policy measures that those countries need to promote in order to benefit from globalization. How would these policies be implemented? How might these policies be promoted?

He argued that three conditions all need to be present for a firm to have a strong motive to undertake direct investment. He named these three components as the “OLI” framework which means ownership advantages, location advantages and internalisation advantages.

Globalization is effectively removing the national boundaries for economic purposes. National boundaries are becoming penetrable for goods and capital because of cheap labor. (Shaw, 2016, p.186). Globalization has both advantages and disadvantages. By transferring the domestic manufacturing jobs to foreign countries such as Mexico or in Asia, Americans companies are bringing cheaper consumer goods. It creates the unemployment’s also the foreign employees are getting lower-wages. (Riordan, M., 2016, NY Times).

The inevitable growth of globalisation over the past few decades has gradually created the occurrence we now know as the “Trans-national Corporation (TNCs)”. This essay will aim to the highlight and explain the situation in which nation states are continually being reformed by these TNCs.

Counties could get benefit from globalization of economy through international trading. However, they also could suffer negative impacts of globalization. In modern society, the trades between countries are usual and frequent. According to Robert, through international trading, the US citizens could buy foreign products in lower prices. However, international trading is harmful for some domestic companies (2013). For instance, if US and China all produce cars. Once both country open its market to the world. China will lose its original competitive advantages because the U.S. auto companies made better cars. The cause of this result is the diversity of competitive advantages. For China, their competitive advantage is low labor costs but low technology. For the United States, they has high technology but high labor expenses. Also if some of countries join some custom unions. Those country who was not in that unions will definitely has disadvantage on international trading. Towards these types of problems, the US government made a lot of policies to protect US economy. For example, tariff is an import tax which used to protect domestic companies. The tariff raises price of import goods. It is only benefit to U.S. producers. On the other hand, world wild business competition enhance hardness for infant companies. The US government also gift

The purpose of this report is to investigate on Globalisation and how it changes the relationship between government, business and civil society of two countries. Also To discover the positive and negative impacts that globalisation has given to both of the countries. The two countries that was chosen are China and Vietnam. In the eyes of foreign investors, these two countries are popular for setting up manufacturing factories. China was known as the world’s largest manufacturing nation and has accounted 38.1% of the global total from it’s manufacturing production(Hodgson, 2014). Many researchers have considered Vietnam as the next China. Although Vietnam is not listed in the top 10 manufacturing countries but it has the inherent advantages that cannot be ignored.

We analyze domestic entry, foreign entry through imports and foreign entry through foreign direct investment (FDI).

As a result globalisation has also undone some important cultural and psychological underpinnings of sovereignty. However, it is imperative to note that the effect of globalisation on different nation states will not be the same, because states differ domestically, historically, politically and socio-culturally. Therefore, states will make different policy choices in response to the same global phenomena (Held 1989, 237).

The key issue with globalization in a post-financial crisis world is regulation. Economic standards must be set in order to protect the global economy from the short term self intrests that have caused it so much harm. The regulations do not stand on their own, they rely on some type of enforcement that comes from an institution, but there is no institution that has the ability to enforce regulations on a global level.() Implementing regulation is not meant to prevent advancement, but rather to minimize the dangers to the workers and citizens of advanced industrialized countries.

Globalization is the process through which events and decisions in one part of the world have come to affect people in another part of the world and therefore have led to greater inter-locking of different parts of the world. It has often been claimed that globalization poses challenges about the validity of the concept of the nation-state. Some believe that because of liberalization and globalization, the need of nation-state or the concept of sovereignty within the nation- state has diminished. I strongly disagree with this statement and therefore will like to prove my point in the upcoming paragraphs.

Every business’s goal is to maximise profit, generate more revenue and increase customer satisfaction. Although to achieve these goals could be changing, barriers from the economic conditions, government and competition has increased the difficulties. Governments and businesses are interdependent, the interdependence will grow further by globalisation of the economy when it comes to international business. Mamman (2004) states: “One of the manifestations of globalisation is the blurring of political and economic boundaries and the diminishing traditional role of national governments.” The role of government has always been an important factor in business, they create rules and frameworks that let businesses compete against each other. Business is affected by the government policy, the rules and frameworks can force them to change the way how they operate. The policies of the government can have implications. For example the requirements of licensing, other permissions, regulations, taxation and formalities. All these restrictions have a direct impact on doing business.

Some scholars who study globalization and its challenges advocate that state’s developmental functions can’t limit so much the state’s proper responsibility. Developing states have complex structures, which concentrate on the central state or probe state-society relations. Their scrutiny of relations within states provides much room for perfection, and they have only begun to value the potential of local governments to promote economic development. The aim of this paper is to explain how globalization has consequences for intergovernmental relations. China and India are analyzed as examples of how globalization affects economy, culture, and policy.

The term ‘globalisation’ has many meanings depending on what academic discipline you belong to. Many scholars have asked whether we are living in a globalised world or whether it should be renamed internationalism, with nations driving the interlinking through governments. Others claim that globalisation has nothing to do with government control but rather is controlled by market forces, led by the multi- national corporations (Held & McGrew 2003).