The effects of globalization on the us economy and nationalism
Globalization can be defined as the continuous inter-connection of the globe which is a result of increased cross-border trading and cultural exchange that occurs between different countries. Globalization has had many advantages over the past especially for the United States of America but so has it borne questionable fruits on the United States’ economy. This has led to a division between the proponents of globalization, the opponents (with the latter having less sway), and the moderates who think globalization should be adopted but within set bounds (Kuepper, 2018). The opponents of globalization often deem themselves Nationalistic and patriotic in their endeavours to salvage the United States from the detrimental effects of globalization. From a general perspective, Nationalism is normally defined as a feeling of loyalty towards one’s nation.
The economic transformation also cemented the role played by different people in making America into what it is today. At the time of the revolution, America had grown into a country of various races and these races fought and owned the fight to the point of victory (Byram, 2017). America got her independence and made her way to the league of first world nations and made herself an important member of the world market as she engaged in cross-border trades that allowed the importation and exportation of commercial goods and services from other continents like Europe and Asia. With much influence, America has controlled a large part of the world’s economy until recently with the rice of other countries like China, and Russia who have proven to be world economic forces to reckon with.
China has, actually, become a threat as it has systematically infiltrated its influence in almost all the countries of the world exporting at a higher cost than they import at. The resolution to adopt free trade with the USA led to the lifting of trade barriers like tariffs and value-added taxes (VAT). In fact countries like China reduced subsidies to their local industries to accommodate the importation from the United States of America. This process of free trade mutually benefited all the countries involved, with countries reaping benefits like technological transfer and the transfer of other essential knowledge. However, after the economic recession of the 2008 countries became more conservative with the globalization of trade (Denver, 2018). Globalization has helped the United States of America to invest massively in other economies, especially in developing countries like Kenya.
The good thing about having a comparative advantage is that you can export the goods that have a comparative advantage. Taking the scenario above, the USA stands to benefit more from trade with the rest of the world given that they shall have an edge over other countries that do produce cement because in the global market they will be among the few nations that produce semiconductors. In this way, globalization distinguishes itself a powerful determinant of the global consumption pattern between countries of all sizes (Kuepper, 2018). However, the downside of this comparative advantage is that if it is mismanaged, the cost to be borne is high and not very conducive for a country’s survival. If that were the case, the United States would be doing more harm to its citizens than it would be doing good to them.
All this is credited to the cross-border relations between the people of the USA and other countries (Frieden, 2018). Finally, globalization has also been credited for the incidence of cultural exchange across borders. As the world continues to become interconnected through trade and other means, the exchange of cultures has been inevitable over the years. The ways people clothe themselves, the food people eat and the general lifestyle of the entire world has changed from the fragmented cultures of individual ethnic communities or even races to a universal culture that has been globally accepted by almost all the nations of the world. It is nowadays a normal phenomenon to find hotels that cook exclusively Chinese, Italian, French, or African meals yet they are located in the United States of America.
An additional six hundred and ninety-two jobs were lost due to the trade deficit between the United States and Mexico, a deficit that has gradually built from the year 1994 up until the year 2010. When trades are shed in this manner, the people of the United States stand to suffer huge losses because they render the millions of citizens jobless (Denver, 2018). Where jobs have not been relocated to low-cost areas, the citizens of the United States have also been forced to compete for the few remaining jobs with people from other countries. This kind of competition is important for any country because it allows for people to sharpen their skill and also offers sufficient manpower for the government, hence more tax generation in ideal situations when there are enough jobs.
However, the United States does not have the optimum conditions to sustain these large numbers. All these have been done with the aim of producing cheap goods to meet the demands of the growing markets that stem from free trade (Collins, 2015). Thirdly, globalization has also led to political interference from big multinational corporations. There have been concerns over the unchecked influence of the multinationals in the United States. As globalization was being spread and being accepted by the countries of the world, it was thought to be a model that would eventually foster the development of democracy but the results have been the contrary of what the United States, like many other countries had hoped for. Some multinational corporations have engraved their presence in the economy of the United States so much that it is almost impossible to separate them from the market of the United States.
This was an indication of the spread of capitalist ideals and how much capitalists were (and still are) gaining from the globalization of the world economy. (Collins, 2015) In reality, globalization has made the poor become even poorer while the rich bask in obscene riches. As is the delight of all capitalist, amassing wealth is always what they are after. They scramble for the global resources and control the lion’s share thanks to their already established large capital bases which they would not want to witness their diminishing. This form of lustrous ambition has played a central role in fostering inequality even in the United States because the poor are becoming even poorer due to the actions of the few rich people.
During the 2016 campaigns, Donald Trump was clear on his stand on international (foreign) trade, foreign investments in the United States as well as immigration. In the Democratic party primaries, Bernie Sanders gave analogies that demonstrated his scepticism on trading with other countries and allowing foreign investments in the United States. It was a historical election since apart from the 1930s, this was the first instance that America had presidential candidates from the two major parties who were explicitly hostile to the integration of the economy. It was also the first time that a leading political party in the United States nominated somebody who espoused a similar view (Denver, 2018). When Trump eventually won the elections in 2016, it was a big win, not only for the supporters of Donald Trump but also to the larger community of economic nationalist, who had, for a long time, been away from the American political mainstream.
China, for instance, has been notorious for currency manipulation which makes their exports expensive and their imports cheaper. This leads to massive profits with which she has been able to secure so much influence in the global economy hence making them a new force that threatens the place of both the USA and Britain. The locking down of the economy or institution of heavy tariffs on goods are traded with the Chinese is only fair for the economy of the United States so that the citizens of the United States of America (Byram, 2017). Apart from currency manipulation, China has set aims at the American markets by subsidizing operations for their state-owned corporations, fund their state-owned companies to sell cheap goods in the American markets.
This form of malicious trading is being done in a perceived bad faith. As a result, the economy of the United States stalls with the stalling of these countries economies, which is bad enough for the economy of the United States. The proponents of the disintegration of the global market are using this to make their case. The United States’ involvement in the oil business is particularly placing the United States at a disadvantage as the countries that have oil deposits are constantly at war, civil wars in most cases. The position of the United States in the global economy is way too much vital to allow civil unrests in these countries to jeopardize their influence in the global economy (Collins, 2015).
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