Globalization And Economic Growth: Impacts On US Business And Government Role

Impacts of Globalization on the US Economy

Discuss about the Globalization And the Economic Growth.

The term ‘globalization’ has been referred to the emergence of a global network, belonging to an economical as well as social system. With the development of the idea, the term ‘globalization’ has stirred several explanations as well as understandings of the connotation and has the record of being persistent to the enormous marketable, business and the imperialist actions across several nations. The concept of globalization can further be associated to the local, the nationalized as well as the provincial. However, on one hand an association is stated to have been formed between social as well as economic associations and networks, structured on the domestic or national economy. However on the other hand it links social and economic associations as well as the systems crystallized on a broader scale the provincial and global interactions (Castagna and Furia 2010). Globalization can further be related to the spatial-temporal procedures of transformations which further constitute the fundament of the shift in the areas of human concerns in organization, associating together and further increasing of space of the associations, whereby there is no explicit and consistent formulation of the conceptualization of globalization. The term can further be implemented regards to connectivity throughout he entire world of the financial as well as social life has improved throughout the centuries (Steger 2017). The rate of communication along with the rate of exchange, the intricacy along with the size of the associations engaged, the economic level, the level of interaction and the complexities reinforces the label of ‘globalization’. The essay will evaluate the way globalization has influenced modern business and world economy in particular US (Pieterse 2015). In addition to this, the essay will cast light on the way globalization has reduced the role of government and the future of world economy by further assessing the role of technological advance in businesses.

Globalization has been influencing the US economy as well as its citizens with its growing rise of several multinational corporations and the competence to sell their products outside the nation. Globalization has further improved the process real-time communication capabilities between the global enterprises and countries. Modern enterprises are initiating ventures beyond the national or local boundaries in the pursuit of elevating business opportunities. Mc Donald’s one of the leading American fast food companies has been venturing in India, China, Australia along with Marks and Spencer’s selling its products in India (Baylis, Smith and Owens 2017). Furthermore, every goods sold by Walmart stores Inc are manufactured in Eastern countries. Greater rate of manufacturing assembly employment require low expertise and skills which have been shifted from the US to several developing nations in Asia. With the elevating demand for products and services with the lower rate of employment in comparison to the previous decades, gross or wages have been witnessing rapid increase as well (Dunning 2014). Though the US economy has been undergoing certain threats a few years ago with the growing rate of inflation, yet business in US has been persistently looking for avenues for growth and improvement in their business production and sustain their condensed rate of unit labour expenditures. US economy has further continued to develop the level of their aptitude with the consequence that the degree of capacity utilization and employment in the industry has been considerably lower (Vivarelli 2014).

Multinational Companies and Real-time Communication Capabilities

Globalization paved ways for a rapid productivity development along with the expanded industrial competence which provide effective contribution in sustain the reduced rate of inflation. It is significant to note that the gross earnings of US have been witnessing significant growth with the advancement of globalization (Desai 2013). It has further been noted that with the costs and advantages of globalization, policymakers have been undergoing certain level of challenges in order to maximise the profitability level while reducing the expenditures. Furthermore, policymakers must offer guarantee of equal opportunity to succeed for US as well as the foreign investors in areas of business, foreign and investment, trade services and other areas. Policymakers must take into consideration both foreign as well as domestic financial state of affairs as they intend to form macroeconomic policy guidelines and further take into account the  global implications of domestic procedure judgements (Gurgul and Lach 2014). Furthermore, improved economic policies have aided the US to attain well-established outcomes which the country has been benefitting with the extensive deregulation of several industries which has stimulated competition and further facilitated to condense the cost to consumers as well as expenditure to trade.  At this juncture, it must be noted that the divergence in relation to direct foreign aid has amounted to around $30 billion of the total investment in the US in 2015 whereby the expenses from abroad to US shareholders have undergone the equivalent rate of cost of production to foreigners in relation to their assets (David and Dorn 2013). The expansion of global capital market is regarded as another significant factor of globalization which further facilitates the cash flow across several nations. Various specialized markets, enterprises as well as individuals have introduced the means whereby organizations will be able to sustain market threats and risks specifically associated with foreign policy exchange and interest rate risks as well as generate approximate investments (Davis and Haltiwanger 2014).  Furthermore, the global financial markets have developed with the progress in foreign trade and investment.

At this juncture it is important to recognize that globalization has been significantly destabilized the conventional governance procedures. The increased global economic assimilation has further condensed the authority of national or local governments while accepting other economic as well as political dimensions (Scherer and Palazzo 2008). The non-profit organizations or NGOs have engaged in environmental governance which has been immensely diversified further incorporating local, national as well as foreign associations with varied purposes that have been committed to the environmental safeguard, sustainable growth, and poverty alleviation along with several other issues. Furthermore, improved forms of NGO responsibilities and participation have transformed the characteristics of global environmental policymaking whereby the community has initiated to acknowledge that constructive global actions would necessitate significant and consequential investor engagements in the domain of global policy making and execution (Scherer and Palazzo 2008). The participation of NGO in global environmental authority can undergo variety of functioning whereby they can aid on the negotiation process by generating accessibilities for politicians in order to compete with the notions and principles from outside to the generalized bureaucratic networks. Moreover, the roles of these non-governmental organizations can further impact the public through movements and wide ranging objectives. The NGOs for the authorization of global range of decision making procedures can facilitate in developing the foundation of understanding of decision-making by further enhancing the quality, power and authority of the policy preferences of global enterprises. Furthermore, the involvement of civil society in the domain of international environmental governance has augmented the procedures and reinforced the consequences at various places and in numerous ways (Tatsiramos and Ours 2014). However, while several governments have agreed to the significant and consequential involvement of the NGOs, there can be dilemmas regarding the weaknesses of civil society which may overshadow its beneficial factors. There have been certain levels of concerns that NGO might comprise specialized groups and their involvement may further produce outcomes of policy misrepresentations. However, such dilemmas may further be overstated by taking into account the benefits of civil society engagement whereby the civil societies can assist in establishing the political determination for new approach towards progress and growth that facilitates the integration of environmental as well as social aims and objectives (Dorn and Hanson 2015).

Reduced Inflation and Increased Gross Earnings

The growing global economic integration along with the development of cross-border incorporated associations of production as well as distribution have elevated the need for directives and regulation that would expand across the customary regulatory limitations and beyond the reach of conventional authoritarian authorities (Freeman 2013). As a result, this elevated complexities ranging in the process of trade and business functioning has been acknowledged by several arch neo-liberalists whereby the operations of the private sector beyond the attainment of state has accomplished an essential principle regarding the neoliberal philosophy which is considered as the removal of states, that further pose challenges to factors related to democracy (Johnson and Turner 2010). It further has eradicated several non-elite groups whether it is associated with the labour interests catering the developed nations or to the growing countries from where the judgements have considerable influences upon the welfare of the state. At this juncture, it is significant to note that the most critical and challenging transformations to global governance have taken place since the conclusion of Cold War as well as the disintegration of several persistent assumptions about the challenging authoritative federations and notions (Sassen 2016). Further to these politically motivated transformations, other dimensions have arrived to the vanguard and confronted the purpose and functioning of global institutions incorporating increased rate of investment mobility, improved flexible exchange rates, and persistent development concerns with the rise of developing economies, the expansion of e-commerce as well as the abundance of national business arrangements. The demand of elevating cross-border transactions to uncover improved approaches and forms of governance has been taken into consideration in the domains of labour market directives, the environment, and ventures, intellectual asset, completion directives. Several sub-state enterprises as well as institutions have been responsive towards advanced cross-border certainties by further seeking direct association with their equivalent in other states evading their own governments or by further seeking direct association themselves with supranational institutes (Scherer and Palazzo 2008). It has been noted that several regions of the nations in the European Union as well as individual US states have efficiently maintained the agency in Brussels in order to facilitate association with the EU agencies (Dodgson 2018). Furthermore, between the state and the global agencies, an occurrence of regional processing have been witnessed whereby several have formulated advanced directives and the approaches of handling these policies with the elevating rate of interdependence and assimilation. However, it can be noted that factors related to globalization comprises of significant impacts for the supremacy of economic as well as cash distributions. It must be noted that the dimensions of globalization can be perceived as the process that has been involving a transformation in power and dominance from the national to the international level, though the supranational level has been regarded as enormously significant. Rather factors of authority and governance has been undergoing transformations in two critical ways whereby the area of governance has been amending to the multitude of varied levels and secondly the factors of authority and power which have been growing not in the public arena but has been highly developing into the focal point of private sector functioning.

Technological Advances in Businesses

With the significant impact of globalization, the evolutions of advanced technologies have facilitated in the eradication of the requisite for immediacy in the domains of several transactions and have further made geographic or jurisdictional connotations of trade markets more challenging. The exemptions of global trade markets have been becoming the imperative in particular to the service domain. At this juncture, the rapid growth of the technology sector of India must be taken into consideration which has been emerging several software organizations at a rapid pace in order to develop the regulative procedures for the US enterprises as well as the service digital organizations located in cities such as New York or London through the process of advance technologies (Szetela and Mentel 2016). However, the geographical uncertainties along with the rising inconsequence of location immediacy are regarded as entities of a vital transformation in the global world economy which has further posed crucial repercussions for the governance (Johnson and Turner 2010). Furthermore, the essential unit of the international economy is integrated in the process of developing territorially distinct local markets to separated supply chains constituting in vast domain trade organization whereby the occurrence of globally incorporated enterprise is an organization that formulates its strategy, its administration along with its functioning in pursuit of recent aims and objectives which is regarded as the assimilation of production as well as the value distribution across the world. The digital or IT revolution has been motivating the significant decline in the area of cost as well as rapid development in the administrative strength of technology advances (Lasserre 2017). The factors related to digital equipment or device the digital development has been significant to the IT revolution have been the advanced microprocessor, the set of millions of tiny electronic circuit installed in computers. Furthermore, development of the usage of nano circuits in microprocessors in 2013 has permitted this advanced technology approach to remain persistent. The significant advancements in the fibre optic technologies have undergone certain challenges to the domain of IT revolution (Dodgson 2018). It must be noted that one of the contributing factor significant to the progressing rate of advanced technologies is human capital whereby the vast range of technology enterprise worldwide has positioned the baseline production of high level technical expertise to the extent where the IT organizations have been seeking new areas of bring improvements to their products. However, the idea of human capital that is the workforce has been effectively promoting such technological advancements and has been considered as the primary contributor of an organizations success and further enhances the level of the capital economy of the country (Szetela and Mentel 2016). With the advancements of globalization tech enterprises across the world especially US has been seeking immensely qualified and skilled labour force who possess extensive analytical and problem solving expertise which further provides them with an extensive edge for competitiveness. Several tech enterprises in US have been driving for improved immigration regulation and policies in order to employ the most efficient recruits across the world (Sassen 2016). The revolution of the technological sector of the US market has led to the demand for software development, advanced information system. Emerging job availability is referred to these commodities in the global world of technology especially for the organizations who have been seeking to recruit individuals from the industrially advanced nations. The developing market for technologically advanced jobs will continue to develop as technologies which have been integrated into the global market. Furthermore, increased number of employment will become accessible to individuals that have attained adequate qualifications in the technology domain (Dorn and Hanson 2015).

Reduced Role of Government

Furthermore, numerous projections have revealed that millions of employment will be losing to the offshore recruited employees. Globalization as well as technology advances is significantly encouraging factors related to innovation, efficiency, productivity as well as economic progress with technological transformations playing immensely vital role. With the attempt to restrain globalization shifts would be considered as the increasing accepted dissatisfaction related to the distributional results and consequences. Globalization has been enhancing the developing environment for US tech and employees in order to broader the level of accessibility towards attaining opportunities that are derived from globalization as well as technological transformations and further to improve the level of competencies to cope with upcoming challenges and complexities (Tatsiramos and Ours 2014). The dimensions of globalizations have been driving the competitiveness in the US trade industry and finance in order to evaluate the progress of monopolistic methods and influence the market authority. Moreover, reforms and modifications are required at the global arena in order to initiate equity between nations in trade as well as other nations. Globalization has further developed the rate of the US trade market further developing wages and revenues of the trade in order to be distributed among the offshore recruits and shareholders. Significantly, globalization and technology advances have been offering reduced marker obstacles and information expenditures whereby digital platforms for cabs like Uber, retail enterprise Amazon along with the hospitality sector like AiBnB have been quasi-monopolies have reduced the level of barriers in order to make an entrance for self-recruited base further creating improved contestable markets.

References

Baylis, J., Smith, S. and Owens, P. eds., 2017. The globalization of world politics: an introduction to international relations. Oxford University Press.

Castagna, A. and Furia, D., 2010. Globalization and its dimensions. Global and Local Economic Review, 14(1), pp.5-18.

David, H. and Dorn, D., 2013. The growth of low-skill service jobs and the polarization of the US labor market. American Economic Review, 103(5), pp.1553-97.

Davis, S.J. and Haltiwanger, J., 2014. Labor market fluidity and economic performance (No. w20479). National Bureau of Economic Research.

Desai, R., 2013. Geopolitical economy: After US hegemony, globalization and empire (the future of world capitalism). Pluto Press.

Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and internationalization in innovation (Vol. 11). Routledge.

Dorn, D. and Hanson, G.H., 2015. Untangling trade and technology: Evidence from local labour markets. Economic Journal, 125(584), pp.621-46.

Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of the 1990s. Routledge.

Freeman, C., 2013. Economics of industrial innovation. Routledge.

Gurgul, H. and Lach, ?., 2014. Globalization and economic growth: Evidence from two decades of transition in CEE. Economic Modelling, 36, pp.99-107.

Johnson, D. and Turner, C., 2010. International Business: Themes and issues in the modern global economy. Routledge.

Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.

Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.

Rodrik, D., 2017. Populism and the Economics of Globalization (No. w23559). National Bureau of Economic Research.

Sassen, S., 2016. The global city: strategic site, new frontier. In Managing Urban Futures (pp. 89-104). Routledge.

Scherer, A.G. and Palazzo, G. eds., 2008. Handbook of research on global corporate citizenship. Edward Elgar Publishing, pp.249-272

Steger, M.B., 2017. Globalization: A very short introduction(Vol. 86). Oxford University Press.

Szetela, B. and Mentel, G., 2016. May the sharing economy create a new wave of globalization?. ??????????? ???????-???, (161), pp.31-34.

Tatsiramos, K. and Ours, J.C., 2014. Labor market effects of unemployment insurance design. Journal of Economic Surveys, 28(2), pp.284-311.

Vivarelli, M., 2014. Innovation, employment and skills in advanced and developing countries: A survey of economic literature. Journal of Economic Issues, 48(1), pp.123-154.