globalization

Examples of globalization in the following topics:

• Global Impacts

  • The 2007-2009 economic collapse was damaging not only to the U.S. but also global markets, driving the global economy into recession.
  • As a result, the 2007-2009 economic collapse had large effects not only at the origin (in the United States), but also on a global scale.
  • This recessionary period spread rapidly around the map, creating a global recession in Q3 and Q4 in 2008 and Q1 of 2009 (defined as a contraction in global GDP growth during that time) as is represented in this figure .
  • Another indirect global impact that occurred as a result of the economic collapse is political instability, primarily due to the inability of developed nations to pursue social welfare investments and global poverty reduction processes during recessionary times.
  • It is quite clear in this graphic, the global GDP growth dropped dramatically following the U.S. crisis, pitching the entire global economy into a recession.

• Growth in the Rest of the World

  • On a global scale, economic growth is the sum of the growth of individual countries to give a worldwide total.
  • Analyzing economic growth in prominent countries provides an overview of global economic growth .
  • The U.S. experienced economic recovery, but the global economic growth lost momentum.
  • The global economic output is expected to expand by $32.9 trillion.
  • The GDP for each individual country is used to determine the global economic growth.

• Consequences of Banking Crises

  • Banking crises have a range of short-term and long-term repercussions, domestically and globally, that reduce economic output and growth.
  • Banking crises have a range of short-term and long-term repercussions, domestically and globally, that underline the severe repercussions of irresponsible banking practices, poor governmental regulation, and bank runs.
  • While these domestic consequences are expected and, in many ways, intuitive, the global dependency upon foreign trade in modern markets has exacerbated these effects.
  • (and to some extent, European) banking disasters in 2008 and 2009 led to a complete global financial meltdown, destroying economies not involved in the irresponsible investing practices executed by banks in these specific regions. identifies the critical importance of economic well-being in trading partners, as the U.S. banking and financial crises spread rapidly (within the course of just one year) across a substantial portion of the globe (though there are certainly other factors that contributed to the financial crisis and its consequences).
  • The slow and negative growth demonstrates all of the economic losses that resulted in part from the U.S. financial crisis, highlighting the dependency of global economies.

• How Income is Allocated

  • Globalization has contributed to some portion of rising inequality as jobs have moved to lower wage geographies, placing downward pressure on wages of higher cost of living countries.
  • However, economists view the impact of technological progress to outweigh the effect of globalization, as technology has effectively been substituted for more expensive wage labor.
  • Globally, income inequality has increased over the last few decades.

• Unfair Competition Argument

  • In many ways, the global markets are torn between pursuing what is best on the global level and what is best at the domestic level, and there is sometimes dissonance between the two.
  • Another critical risk in the global market is intellectual property (IP) protection.
  • On a global scale, however, it is quite common for developing nations to copy new technologies via reverse engineering.
  • The downside to this is that utilizing these measures creates political unrest, global factions, and strained business relationships.
  • Another unfair competition threat is the emergence of global monopolies.

• Introduction to Foreign Trade and Global Economic Policies

  • U.S. foreign trade and global economic policies have changed direction dramatically during the more than two centuries that the United States has been a country.
  • That did not mean, however, that the United States was about to withdraw from the global economy.
  • Several financial crises, especially one that rocked Asia in the late 1990s, demonstrated the increased interdependence of global financial markets.

• Infant Industry Argument

  • Technology advanced rapidly, and without strategic alliances on a global scale, Brazil largely missed out on these advances.
  • This protectionism seems to have damaged industry prospects on a global level for Brazil in this scenario.
  • The reason for this is quite simply the significant jump in prosperity as international trade expanded, and the huge capacity for specialization, economies of scale, technology sharing, and a host of other advantages that have been a direct result of free global markets.
  • As a result of this, protecting infant industries can benefit the nation employing them, but generally with the opportunity cost of global value.

• The 1990s and Beyond

  • Japan's economy, often considered a model by Americans in the 1980s, fell into a prolonged recession -- a development that led many economists to conclude that the more flexible, less planned, and more competitive American approach was, in fact, a better strategy for economic growth in the new, globally-integrated environment.
  • Finally, the American economy was more closely intertwined with the global economy than it ever had been.
  • While many Americans remained convinced that global economic integration benefited all nations, the growing interdependence created some dislocations as well.
  • Then, when the economies of Japan and other newly industrialized countries in Asia faltered in the late 1990s, shock waves rippled throughout the global financial system.
  • American economic policy-makers found they increasingly had to weigh global economic conditions in charting a course for the domestic economy.

• National Security Argument

  • Economic interdependence and globalization has resulted in a system, where each country is largely dependent upon other countries for economic sustainability (though to varying degrees).
  • However, the opportunity cost of leveraging the ever-growing global markets make this an unattractive prospect if taken to any extreme, as the benefits of global trade rapidly offset the risk of economic dependency upon hostile nations.

• Supply Reduction

  • Governmental policy to reduce supply also exists and is executed often from a global trade perspective.
  • Global warming has been slowly increasing temperatures as the ozone layer erodes due to a variety of pollutants, altering the ecosystem averages outside of the evolutionary environment in which many agricultural products historically grew.