The United States of America and the European countries Essay
It is observed nowadays that every economic status of each country has been tried by times. It is phenomenal too that most of the nations nowadays are facing ups and downs regarding their economic status. It is also known to us how each country tries to overcome its economic dilemma. Even the most technologically advanced nations such as the United States of America and the European countries are not exempted for such crises and continuously looking for new strategies and approaches on how to cope with these phenomenal crises.
Moreover, several industries around the globe are totally affected with this so called-economic failure and some of these industries are declaring bankruptcy and presently closed because they are not able to cope up with the low demands in the local market. The supply and demand in the market depends on the economy of each country. The first one to be affected with the economic stability or instability is the consumers, then the industries.
When there is economic stability, the flow of the supply and demand in the market is very high because consumers can afford to purchase products because of the affordable and reasonable prices stated but when there is economic instability and fluctuations, the industries will increase their product’s prices so that they can cope with their losses and accumulate profits. And because of these scenarios, the selling of the industries has been affected because their valued consumers are unable to manage the high-selling-prices and prefer not to purchase it anymore.
And if the industries are starting to have difficulty in accumulating back their losses, there will be retrenchments amongst employees to pull back its profits. Because of this depressing scenario, the economists had arrived into a conclusion, after with so many deliberations, that they definitely believed that this strategy will surely help the economic status of each country and this strategy is called “globalization”. This study gives better and deeper understanding of what globalization is and what causes it and; (2) know its benefits.
III. Discussion A. What is globalization? Globalization can be defined as the increasing flow of products, people, money, and ideas across the globe. National economies are being swept into the global economy. One can thus think of globalization as rushing through four channels: • Freer trade goods; • Freer mobility of labor; • Freer investment; and • Freer communication, thanks to telecommunications and the Internet. B. What causes globalization? 1. Capitalism Free enterprise is now the dominant economic system in the world.
China is very much capitalist and her late Communist Party leader Deng Xiaoping coined the slogan, “To get rich is glorious. ” Only Cuba and North Korea are holding on to the central planning system of running the economy (Woods, 2000). Capitalism brings along free trade and the free flow of money across the earth. Countries belonging to the World Trade Organization are trying to bring down tariff barriers. Today, immense portfolio investments zip in and out of countries at the click of a mouse (Baylis & Smith, 2001). With free trade comes economic integration.
It is possible to download an album of songs in the United States of America, turn it into CDs in Europe, print the cover and lyric sheet in France, and sell it in Asia. The greatest story of economic integration is the European Union, with its common currency, the euro (Brecher & Costello, 2004). 2. Information economy Another driving force is the knowledge economy. Land, labor and capital are bowing in importance to brain creativity. In the United Kingdom, over a three-year span, manual jobs dropped by 750,000, while professional jobs shot up by 1.
5 million (Brecher & Costello, 2004). 3. Mass Media The invention of the printing press helped scattered people become a national community. In the same way, the evening news is nurturing world’s community. The suffering in India and Indonesia are brought home through CNN. 4. Telecoms There is a global boom in telecommunications. A fourth of all Europeans, have mobile phones. The people in Finland gave the greatest access to cell phones at 417 for every 1,000 people (Brecher & Costello, 2004). C. Benefits of Globalization • Greater production
The global expansion of trade and enterprise has brought vast benefits. Think of a firm manufacturing T-shirts for a market of two million people, say, a small city. Then the company decides to export to China. It then faces a potential market of one billion Chinese. Expanding the market not only bloats profit. It also allows the firm to produce in much greater volumes. That drives down the cost for each T-shirt. In the end, even the original local city benefits from the lower prices (Held, 2002). • Access to world culture
Products and ideas from abroad provide Americans a richer cultural menu. We taste Japanese sushi, Chinese cuisine and many others. Globalization even inspires solidarity. Because nations are more interconnected through globalize media, we get to feel each other’s pain. A CNN broadcast draws sympathy for India’s earthquake victims (Hirst & Thompson, 2002). D. Dangers in Globalization • Economic vulnerability Local companies feel threatened by cheaper imports and behemoth foreign firms. Some will exit the playing game. There lurks the fear of displacement.
Mega-forces twist nations into adjusting their economies. As such, hordes of workers have to change jobs, factories, cities and countries (Nerderveen Pieterse, 2000). • Volatility The market has become most volatile. Capital flows in and out of nations at lightning speed. As Russia well knows, a country can bleed millions of dollars with the click of a mouse. • Disempowerment Amid the fury of market change, individuals may find themselves powerless. A professor wakes up to see her salary cut sharply by devaluations across United States.
This disempowerment extends to national sovereignty. Where is independence when technocrats dictate your economy’s behavior from across the ocean? (Peterson & Runyan, 2004). • Undesirable Culture Local culture gets polluted. Grade school kids surf the Internet for pornographic websites. MTV can spawn a generation of youth that will not dream of serving. III. Conclusion In conclusion, globalization has been in the scene throughout the years; thus, globalization, outsourcing, industrialization, improved transportation, and multinational corporations have great impact.
Global trading may serve as a tool to make one’s economy more stable or not. And because of our advanced and enhanced technology, we can easily do business internationally. The internet is one of the effective means of advertising globally; where we can have the chance to endorse our local products internationally and gain more profits if we have this access. But globalization always goes hand in hand with the local economy where products come from. Globalization may have positive or negative impacts to our local economy depends on the scenarios occurring.
If we export our goods more frequently to other countries, surely our economy will boost up and increase. And because of this, job opportunities and hiring rates for jobs will also increase because of the in demand products exported; thus, it will lessen the poverty rates. But if the citizens of our country are fond of imported goods and products and choose to purchase them instead of ours, it will cause a great negative impact to our economy. It will make our economy unstable and there are companies that will struggle to survive. Excessive support in imported goods, products or services may “kill” our own economy.
Reference: 1. Baylis, John, and Smith, Steve, eds. The Globalization of World Politics. 2nd ed. , 2001. Oxford: Oxford University Press. 2. Brecher, Jeremy, and Costello, Tim. Global Village or Global Pillage: Economic Reconstruction from the Bottom Up. Boston, MA: South End Press, 2004. Radical critique of recent patterns of economic globalization. 3. Held, David and others. Global Transformations: Politics, Economics and Culture. Cambridge: Polity Press, 2002. Comprehensive account, rich in empirical evidence. 4. Hirst, Paul, and Thompson, Grahame.
Globalization in Question: The International Economy and the Possibilities of Governance. 2nd ed. , 2002. Cambridge: Polity Press . Skeptical on the “myths” of globalization. 5. Nerderveen Pieterse, Jan, ed. Global Futures: Shaping Globalization. London: Zed Books, 2000. Suggestions for global reform. 6. Peterson, V. Spike, and Runyan, Anne Sisson. Global Gender Issues. 2nd ed, 2004. Boulder, CO: Westview Press. Excellent feminist account. 7. Woods, Ngaire, ed. The Political Economy of Globalization. Basingstoke: Palgrave, 2000. Accessible on global investment, trade, money, and governance.
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