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TRADE AND ECONOMIC GLOBALIZATION Scott Pegg, in his work on Globalization and Natural-Resource Conflicts, maintains that Leaders of internationalized, centralized, and privatized resource-rich states depend upon commercially successful exploitation of natural resources for their survival. This dependence upon the revenue streams generated by natural resources promotes and encourages violence. The frequent end result of such vested interest in the efficient and uninterrupted exploitation of profitable resources is that militaries, paramilitary organizations, and state agencies often create or exacerbate resource-based conflicts by their participation in protective activities, their involvement as actors, or their coercive tactics. (Peluso, Nancy 1993, p. 67 as q in Pegg). This paper integrates Pegg and Steger's ideas on globalization and looks at the ramifications wrapped around these ideas as the different major parties interplay with each other. The world has witnessed several revolutions in terms of how each sovereign country deals with others when it comes to trade.
History has shown us that trade has been a major part of life of the people. Trade has evolved from simple barter between groups of people to a more complex world trade that has transformed from galleon trade to e-commerce. Trade has transcended country borders with domestic businesses opening up their doors and accepting the challenge of proving their worth through their competitive advantage. The competition has extended from mere domestic to a more complex international arena. Globalization of the world was the ultimate celebration of the political, economic and social homogenization of the global populations. Globalization of the world is the ultimate celebration of the political, economic and social homogenization of the global populations.
The trend has been that major economic activities transcend country borders and are integrated in a worldwide interdependent economy. This interdependence in the global economic arena is usually referred to as the global economy. The process by which various independent economies of the world are integrated not just economically but socially and politically as well is termed as globalization. Various authors, economists especially, have given different definitions to the term globalization ranging from being an act to being process as well as being a policy (Worf, C.
Jr. 2002). Meanwhile in an article by Steger, he mentions that the US must demonstrate that it is not only the most powerful military power on the planet, but also the foremost market economy in the world, capable of leading a greater number of developing nations to a more prosperous and stable future. (McFarlane & Bleyzer as q in Steger). Yet, the issue of integration has been a continuing debate in the international arena. Some countries have openly accepted the idea to integrate their economy in the global market while others have apprehensions in doing so. Questions have arisen as to what extent the economy should open to world trade and on whether countries can impose protectionist stance in dealing with the global market. These have resulted to varying responses of each country to the global economy as well as to world trade.
Pegg states in no certain terms that the leaders of international and centralized states depend upon the exploitation of natural resources for their survival. He maintains that this causes violence since they generation of these natural resources passes through many sources who protect the continuous flow of this process of perpetuating the preservation of their wealth accumulated from these activities. As most people would say, one of the most apparent effects of the emergence of the global economy to trade is the opening up of country fronts and easing entry barriers to trade. The existence of the global economy, in effect, has loosened the protectionist stance of some countries to certain degrees. World trade has become easier because of establishing the global economy by means of the institutionalization of various mechanisms that assure open economy. Globalization resulting to economic integration has made countries to open themselves to expanding flows of trade (International Chamber of Commerce, 2004, p. 4).
These growths in world trade are the results of the steady decline in trade barriers resulting to structural changes in world trade (HM Treasury, 2004, p. 5). The decline in trade barriers with the consequent effect of opening up the economy of a country has resulted to economic efficiency (ICC, 2004, p. 6). These have made countries focus on what they do more efficiently and export them to countries that are less efficient in producing the same product (ICC, 2004, p. 6). In the same way, ICC (2004), noted that countries who import products that they produce less efficiently are exporting the products that they can produce more efficiently (ICC, 2004, p. 6). Thus, the workings of the principle of competitive advantage result in the specialization of countries in products that they do more efficiently. Various organizations have blamed the policy of protectionism of certain countries in the sufferings of some of their industries.
The case of the agriculture sector can be used as a case in point. As being the most protected industry in world trade, the agricultural sector has suffered rather than benefited from the protectionist stance of their policy-makers (ICC, 2004, p. 9; HM Treasury, 2004, p. 6). The emergence of the global economy has made trade between and among nations easier and more advantageous saved from those instances where it has resulted otherwise. It is the writers opinion, as highlighted by several authors (ICC, 2004; HM Treasury, 2004; Krugman, 1997), that the global economy is not the sole reason why some countries are having problems with it.
The problem lies not in having an open world trade. It is more of a result of erroneous policies of countries who would want to protect their local economy as well as those who would want to take advantage of their strength to exploit countries that are less prepared to come in the global economy. No one can blame to the protectionist stance or the global economy alone. World trade in the global economy is a responsibility of every nation who decides to enter the global economy. For quite a number of years now, the concept of progress closely linked with economic liberalization is manifested in seeing infrastructure developments right before ones eyes. Highways, bridges, dams to generate electricity, high-rise-storey buildings or condominiums, huge shopping malls, high-class hotels and tourist resorts are identifiable with the concept of a country with a progressive economy.
Everyone seems to accept that industries exist, backed by local government and banks and other financial institutions are always indicators that progress is at hand. The once noble occupation farming has been replaced with gigantic constructions firms running the management of fertile lands converted to construction and commercial sites. Vast tracks of lands converted to golf courses are only enjoyed by the rich, powerful few individuals and depriving those poor and who could not afford expensive fees from enjoying them. The world is rapidly moving to realizing the idea of a global village as commonalities in terms of economic aspirations and technological progress were emphasized by politicians and opinion makers, over differences such as religion, culture and ethnicity. Globalization of the world was the ultimate celebration of the political, economic and social homogenization of the global populations. The United Nations and the international community are one in fighting against terrorism.
As it is destructive of life, liberty and property, terrorism is a heinous crime whose perpetrators must be extremely punished. World conventions are being organized to open door for cooperation among nations who want to put up appropriate legal frameworks that criminalized terrorism-related offenses, investigate alleged offenses, arrest, prosecute, or extradite offenders (Welsh, 2005). As international cooperation among sovereign states is fostered, parallel and joint actions are aimed at ensuring that both domestic and international securities against terrorism are in place accompanied by corresponding treaty-based and UN-based international law (Welsh, 2005). A case in point is the contributing significance of putting up the Nuclear Terrorism Convention that impacts the development of a Comprehensive Convention on International Terrorism (Welsh, 2005). The countries, like the United States, Russia and others, have stressed the importance of putting a Comprehensive Convention on International Terrorism into reality, and by putting such reality into actual practice with goals and objectives behind what it is made up for. Today, the community of nations is set to outlaw and condemn the terrorist activities.
It aspires to achieve global unity fighting against terrorism. It treats terrorism as a domestic and international concern that requires strong and firm domestic and international legal systems to combat the terrorist perpetrators. Fighting terrorism is a concern of everyone, individually, and of all nations collectively. There is no way but to fight it before it will be too late. Terrorism must be treated just like a terrifying nightmare that slips off ones minds into the air and must never come back ever. Terrorism does not deserve to stay and rest in todays time.
The need to act against it must start now. Indeed, the impact of globalization to the dynamics of stakeholders in the international community demands utmost consideration as its effects have a multifaceted character. Globalization involves the increasing interactions between sovereign states and non-state actors in the international arena and to a situation wherein events in one part of the world have repercussions on other areas and to the lives of people. Globalization has swept the manner in which economies are managed as well as policy decisions were formulated by the state.
Globalization issues have a colorful and meaningful history and affect the variables that are in interplay now. It continues to play a role in shaping the relationship of states and societies. References HM Treasury. (2004). Standing Up for the Global Economy: Key Facts, Figures and Arguments in Support of Globalization. Accessed 4 March 2006 at: web international trade/ inttradeindex. cfm Krugman, P. (1997).
We are not the World. New York Times. Accessed 4 March 2006 at: web International Chamber of Commerce [ICC] (2004). Trade and the Global Economy: The Role of International Trade in Productivity, Economic Reform and Growth. Accessed 4 March 2006 at: web statements/ 2004 /Globalization% 20 paper% 2004.
pdf Pegg, Scott. Globalization and Natural-Resource Conflicts. Accessed 5 March 2006 at: web Peluso, Nancy. Coercing Conservation: The Politics of State Resource Control, in The State and Social Power in Global Environmental Politics, ed. Ronnie D. Lipschutz (as q in Pegg).
Steger, Manfred. Ideologies of globalization. Accessed 4 March 2006 at: web Welsh, Steven C. (May 17, 2005). Nuclear Terrorism Convention: International Convention for the Suppression of Acts of Nuclear Terrorism. Center for Defense Information: International Security Law Project.
Accessed 4 March 2006 at: web Worf, C. Jr. (2002). Globalization: Meaning and Measurement. In Straddling Economics and Politics: Cross-Cutting Issues in Asia, the United States, and the Global Economy (chap. 1). Accessed 4 March 2006 at: web publications/MR/MR 1571 /MR 1571. ch 1.
pdf World Trade Organization (2003). Understanding the WTO (3 rd ed. ). Accessed 4 March 2006 at: web understanding. pdf
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Research essay sample on Trade And Economic Globalization
