IS THE WORLD ECONOMY BECOMING MORE GLOBALIZED, MORE INTERNATIONALISED, MORE WESTERNISED OR MORE NEOLIBERAL? DISCUSS
Introduction
The world economy is a contemporary topic of study in the current century because of its uncountable benefits. People need to understand the economic situation of the world to foster local, regional, and international development. There are numerous benefits of understanding the economic trends in the world. Understanding the world’s economic trends enhances an individual’s purchasing powers, economization, and creating a platform of countering the effects of any economic problem such as recession and depression (Cannan, 1976: 34). From the past experiences, it is notable that the world economic recession affected many people and institutions. Although some people and institutions have countered the aftermaths, they are still keen to monitor the global trends pertaining to economic matters to mitigate reoccurrence of the same problem. It is the task of all people in the world to gauge the current trends of the economy to curb impending problems. However, economic analysts have the task of advising the world appropriately.
Economic trends in the world have been shifting from time to time without prior predictions. People should focus on observing the trends to understand exactly what they should do to promote the world economy and find solutions to the impending problems. This is when the following question comes into focus; is the World Economy becoming more globalized, more internationalized, more westernized or more neoliberal? The answers to this question would necessitate the understanding of the economy and how it impacts the people. In response to the question, this paper is based on the views of radicals, skeptics and pragmatics regarding the factors promoting the existence of economic globalization as a new phenomenon, different from internationalization, westernization, liberalism or cultural convergence.
Globalization, internationalization, westernization, and liberalization are all applicable in economic terms. The world economy can adhere to any one of the above, provided there is the platform to do so. Additionally, the economy can adhere to either of the above in relation to time. Time matters a lot in economic terms because it is the mantle of changes that take place in the world economy. Different people view the above economic elements through different lenses and thus coming up with different views regarding the issue. There are very few instances where the economy has shifted from the normal orientation to a captive state such as recession and depression. Some economic orientations are predictable while others lack the platform of influencing sensible prediction. However, it depends on how people approach the problem in the quest of finding the most appropriate solutions.
Globalization is currently at par with liberalism, internationalization, and westernization. Although both of them are economically significance, globalization plays key roles in the development of the economy. Critics may define the key economic elements from different perspectives. However, restrictions are based on the mode of application of the concepts to solve economic crises and promote positivistic trends in the world economy. In this case, arguments for globalization seem to overwhelm the support for liberalism, internationalization, and westernization. Different factors support globalization and thus placing it at higher points of consideration as compared to the other three elements of world economy. Therefore, it is justified to argue that the existence of economic globalization is a new phenomenon in the world. Discussion of globalization exists in tandem with the other factors such as liberalism, westernization, and internationalization.
- Globalization
Globalization, from the understanding of the skeptics and radicals, is the process of integrating economic tasks from different parts of the world. It involves the interchange of global cultural aspects, ideas, products, and world views. There are different approaches of dealing with the issue of economic globalization. First, the term “globalization” is associated with modern economic aspects. Globalization has been in existence since the third millennium (BCE). However, there has been intense application of the term globalization from the late 19th century and early 20th century. Globalization has never suffered a bottleneck between now and the 19th century. In fact, there have been major improvements in the world of globalization. The developments are easily visible and thus subjected to analysis by skeptics and critics.
Many people consider that globalization is the face of economic success in the world. It is linked with developmental factors in the world of economy because of the assumption that it a radicalization process. It is synonymous to creation of a safe haven to enhance the world economic growth. In other terms, globalization is said to be an effective economic enhancer in the modern world. Currently, all opinions regarding the strength and stability of the economy are attributed to globalization. It is also assumed that globalization cannot be fully eliminated because it has deeply penetrated all spheres of global economic systems. The governing principles of the economy are essential because they enable individuals to understand the real significance of globalization (Smith, 1776). In fact, more is expected from the increasing trends in globalization. The outcome of globalization is fruitful and everybody can feel it in the air. There are very few people who can argue against the good spirit of globalization because the accompanying evidences are clearly visible. No business-oriented minds can have the perception of completely frustrating globalization. The motivation behind the issue of globalization is inevitable. It is, therefore, expected that the world would be a better place due to the most powerful economic changes effected by globalization.
- Internationalization
Internationalization has no generally accepted definition. According to Shimomura & Kemp (1999), internationalization is the increment of the number of countries in which businesses establish their bases. It is the enhancement of the number of commodities that businesses trade in different countries in the world. It can also be defined as the international sharing of technology among different economic powerhouses. Generally, internationalization is the process of increasing involvement of business in international markets. Mostly, businesses conduct environment scanning to establish the identity of the best market that can support the businesses. Therefore, it is an economic technique of growing business in different parts of the world.
Internalization is related to globalization and the cultural trends in different regions of the world. For instance, before investing in internationalization, an individual must study the mode of globalization to get ideas regarding the most applicable approach to make the process steady (Kemp & Shimomura, 1999). On the other hand, it is important to study the culture of the target regions to facilitate business performance. Failure to proactively analyze the state of international markets is likely to negatively impact on business performance. For instance, the Uppsala Model is a theory that promotes the intensification of operation of firms in foreign markets. These firms should start functioning in their own regions, where they are conversant with culture and geographical orientation before moving into markets that are more advanced geographically and culturally (Edward, 2003). This statement illustrates the importance of market scanning before expanding business to other international regions. Geography and cultures that are consistent in the international markets are the greatest influencers of the world economy. Working under these cultures is a perfect way of collaborating with the societies within that region. Survival of a business in international markets that offer deviational cultural environments and geographic provisions is a milestone to internationalization. However, it is one of the best techniques that can enhance the economic development of different nations. This is because it gives numerous nations the chance of taking part in business and thus enhancing their GDPs. Unfortunately, it is not as effective as globalization.
- Westernization
Westernization is the adoption of western culture through various applications that can be effective when applied. Therefore, economic westernization is the process of manipulating economic structures to suit the requirements of the western world. Some people argue that westernization is synonymous with modernization. This implies that the western culture is the most appropriate means of development that can also serve as recipe for the whole world. Westernization has been in existence for several decades. It is intuitive to assert that westernization functions unilaterally with globalization. However, globalization has not been in place for a long period that is comparable to westernization. Westernization has been in existence for several decades, unlike globalization which has been in existence for less than three decades.
In several instances, westernization and globalization share a niche. Additionally, westernization and internationalization share the same economic theories. There are two clear ramifications of westernization that come into force as far as the process of economic development is concerned. First, westernization can be viewed from the perspective of the non-western nations. For instance, these countries may adopt the western cultures and apply them in their localities. In economic terms, the nations are likely to be westernized by applying the Western economic styles in their localities. They may utilize the business strategies that the western countries utilize back at home. Second, westernization may be imposed on other nations by the western nations. This can be linked to internationalization because of the task of western countries to offer appropriate assistance to the less developed or developing nations. Consequently, the western world is likely to impose their cultures on the nations of interest. Very few nations can ignore the western vices of economic growth because of its relevance to the whole world. In fact, industrialization and the most appropriate technical know-how of dealing with business growth were apprenticed by the Western world. Westernization has been deemed one of the facilitators of economic growth in international markets due to their exposure to appropriate western policies. The evidence is that the Western world is more developed than the other parts of the world. It is economically sane to declare that the other nations should try tirelessly to embrace the culture of the western world.
- Liberalism
Economic liberalism is an ideological concept of economic organization where individuals play key roles in decision making. This implies that the greatest part of economic decisions is contributed by individuals, but not by organizations or companies. It relies on the platform of various economic policies brought forward by individuals. Most of these policies are strongly based on private property and market economy as the only avenue of production. Although it may support the government’s control, economic liberalism prohibits the intervention of government and thus propelling growth from free market perspectives. Government intervention is only applicable when eliminating market monopoly so as to maintain the liberty of individuals. Ultimately, economic liberalism favors markets that the government does not fully control. It only works well when there is free and fair trade that lacks monopoly. Liberalism is therefore, a substrate of economic growth. It begins with individual countries and spreads to the international nations.
Liberalism share the same verdict with internationalization and globalization, however, there are several unique differences that counter the similarities. For instance, internationalization is the desire of institutions to operate in international countries. However, liberalism may not function in this case because it is the individuals, and not the whole institution, that should make informed economic decision. On the other hand, globalization involves processes of making relevant decisions that suit the occasion at hand. Globalization too is likely to be controlled by government policies, and therefore, eliminating the room for making informed liberal judgments regarding the issue (Lodge, 1995). Through liberalization, economic growth is likely to take place because of elimination of monopoly. However, liberalization does not match globalization as the most appropriate enhancer of the world economic growth. There are is relativity in the effect of globalization in relation to the impact of globalization on the world economy. There is a variation in both negative and positive context.
Promotion of Economic Globalization
Economic globalization is the main element of world economy that can be presented in the expense of others such as internationalization, liberalism, and westernization. As far as the later three elements may be significant in the world of economy, they do not match the ambience that comes with economic globalization. They are not as contemporary as globalization and thus their effectiveness is long overdue. Therefore, it is justified to assert that world economy is becoming more globalized. It is a new phenomenon and thus beats the other forms of world economy such as liberalism, westernization, and internationalization. There are various factors in play that promote the existence of economic globalization. The basic factors include advances in transportation and telecommunications, international workforce, and urbanization.
- Advances in Transportation and Telecommunication
Improved transport and communication systems are the central core of globalization. From the basic definition of globalization, it is evident that infrastructure plays an important role. Globalization, in itself, is a scenario where businesses and people located in different regions of the world are linked. It is the process of making the world a global village that is easily accessible without considering distance or communication. Infrastructure, including transport and communication networks, is one of the numerous factors that promote economic growth. This is because they enhance the flow of goods and ideas from one region to the other.
Many businesses prefer internationalization of their services and goods. This implies that the organization should create a network that links its services with the consumers from different places of the world. To link the two centers of interest, organizations need to utilize transportation and communication services. For instance, a manufacturing company located in the United States will need to transport its goods to their customers who live far away from the Export Processing Zone of that particular organization. It is logical to state that it would only be possible to transport the goods and services if there are appropriate transport systems. The same applies to importation of raw materials and labor services. Transport services are necessary for an organization to import raw materials for its manufacturing purposes. Road transportation and water transportation are two major means of transportation that are used locally, regionally, and internationally (Sparks, 2007: 56). However, air transport has spearheaded the process of goods and services transportation from one location to the other. Air transport is safer and faster as compared to water, rail, and road transport. There is no argument that refutes the fact that advanced transport systems have enhanced the flow of goods and thus leading to world economic growth. In the past, transport systems were not as good as they are currently. Consequently, this is the phenomenon that promotes transport as one of the factors that have facilitated world economic growth.
Advances in telecommunication also add up to the effectiveness of business operations across the globe. Telephone communication and the use of internet to communicate have advanced the growth of the world economy. Effective communication is a facilitator of organizational leadership and operation. It is always advisable to create an appropriate communication system that is inclusive of important business operations. Telephone services and the internet offer a great deal to the business community (Murray, 2006: 44). In this century, the use of Email and other social sites to communicate is a norm. Companies have taken advantage of these services to advance their businesses. The use of Internet to communicate is very efficient. Company to company communications have been advanced and made easier. Through this communication, exchange of economic ideas has been made easier and more effective as compared to the past era when the Internet was a mystery. Nowadays, many companies have created their own websites and social media platforms where communication with the world is possible. Through the websites, ecommerce has been made a reality. Customers can now order products from distant companies and get the delivery as soon as possible through the advanced transport systems. Additionally, companies use the Internet to market their goods and services in addition to obtaining feedback from consumers regarding the quality of such products and services.
- International Workforce
Globalization is the order of the day because of the support of international workforce in developing businesses. Many companies have set up subsidiaries in different countries all over the world. It is fortunate that there is enough international work force to provide labor an even market the products and services. The international labor is a relevant business growth factor because the members of the labor force are familiar with the culture of that region (Reinsdorf & Matthew, 2009). Therefore, it is important to use the local workforce instead of exporting/importing workers from the mother nation. In real sense, international workforce is a factor of globalization that has influenced the growth of world economy.
- Urbanization
Urbanization is the process of developing urban centers. In the process of urbanization, the resulting outcome is industrialization. Most parts of the world have been urbanized and, therefore, enhancing the development of infrastructure such as transportation networks and communication systems. With appropriate systems in the urbanized systems in place, economic growth becomes plausible. Consequently, the international investors take advantage of the development and launch businesses in such areas. Consequently, the world economy becomes favored.
Conclusion
Economic growth has been attributed to various factors. Initially, it was believed that factors such as liberalism, internationalization, and westernization were behind the growth of the world economy. However, globalization has been placed at the helm of the other factors in the modern world of advances in technology and science. Some of the factors that make globalization the leading enhancer of the world economy include advances in telecommunication and Internet, urbanization, and availability of international workforce. With these factors in place, globalization will maintain its position as the leading contributor of the world economic growth.
References
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