Globalization can be defined as the process through which economies of different nations are becoming increasingly connected. Moreover, with a globalized economy, consumers can purchase goods and services from various parts of the world irrespective of their location. This is possible due to the introduction of the internet among other platforms that support the practice. It is worth acknowledging that globalization is inevitable as economies are becoming increasingly interconnected each day. This study seeks to explore the concept of globalization, cite its advantage and disadvantage while appreciating some of the global cities in the US and how globalization has influenced its affairs.
Key benefits of globalization
Globalization has enhanced free trade as it has contributed towards the elimination of the different kinds of barriers in the international market. Therefore, different states can trade with one another without any restrictions whatsoever. For instance, NAFTA is one of the trade agreements in North America that allows the exchange of merchandise between Mexico, Canada, and the USA without any import or export restrictions (Kloosterman et al., 2016). The concept of free trade allows consumers to have a greater choice of products in the market and buy products at lower prices due to increased competition in the international market. Countries with products to export have an opportunity to gain access to a larger market due to the concept of free trade. Globalization promotes the exchange of innovation, an aspect that makes most countries to employ efficient tactics in production hence reducing cost and resource use (Vormann, 2015). Furthermore, globalization allows free movement of labor allowing countries to outsource this significant resource. Moreover, the issue allows nations to fix gaps in the labor market in their respective countries.
Disadvantages of Globalization
The notion of globalization is not without challenges as it has hurt some economies and countries. The worst problem of globalization is the fact that it offers an even playground for every nation hence intensifies competition, an aspect that disadvantages the developing countries that are not efficient in production. Moreover, according to critics, they argue that free trade would only be fair if they allow the industries in the developing states to achieve some significant level of growth. Globalization contributes to labor drain as it allows movement of labor from one country to another, an aspect that makes most people jobless in their countries. Another challenge of globalization is multinational companies often evade paying taxes in countries where they generate a lot of profits which is a loss to such governments. According to Manolache, (2013), critics are concerned that the issue of globalization has resulted in cultural loss due to the concept of cultural diversity that has gained popularity in different parts of the world.
How can cities compete in a globalized economy?
It is worth appreciating that cities host a vast population of people from different parts of the globe and generally possess about 50% of most of the country's jobs (OECD, 2006). Moreover, they are presumed to have high economic growth, attract a high rate of foreign investment as compared to the rest of the country. However, a matter of concern is that most cities are experiencing pollution challenges, are crime-ridden and socially disparate. However, to succeed in the current global setting, cities have to develop effective policies that will support rapid growth and attract foreign investment, as they are significant drivers of the national economy.
Some of the competencies acquired by successful cities include the ability to attract a pool of talented people, act as centers of innovation and entrepreneurship, an aspect that will attract more investors into such economies. Moreover, such cities ought to be strategically located for the purpose of summing up as global and regional headquarters. Moreover, for the cities to compete adequately with other cities in the global setting, they ought to have easy access to universities and other production facilities as they assist in the development of new products and commercialization.
For cities to remain competitive in the global setting, they ought to be flexible and adapt to the changing conditions presented by globalization. This can be achieved through being open and have diverse industries other than an economy that is influenced by a single industry. The cities should embrace innovation to remain relevant in the market and overcome the different business challenges (Marr, 2016). For the cities to stay competitive in the market, they ought to have in place a right mix of priorities such as leadership and visionary. This will include the development of proper policies to support the economic development of the country. We can conclude on the note that cities are vital economic drivers in any state and should possess some key competencies for them to remain competitive in the global setting.
An example of global city in the USA, California
California is one of the global cities in the US and has experienced significant changes in the recent past. The situation of increased global integration has been supported with the development of adequate policies that are intended to boost exports of the cities firms while attracting investors into the region at the same time. Compared to other states in the US, the city has most of the international economic activities as it exports most of its services out of the country to the rest of the world. Some of the affairs that have been influenced by globalization in the city include the use of production-sharing which is a unique technique. According to PPIC, (2003), globalization has significantly shaped the city's policies with the introduction of trade policies that focus more on enhancing export and attracting foreign investment while at the same time creating more jobs opportunities for the people. However, it is imperative to acknowledge that globalization has had a great impact on California's economy hence good for the city.
Is Orlando a good example of a global city? Why?
No. Orlando is not a good example of global city, as it has no direct and tangible effect on global affairs through the different socio-economic activities. Moreover, there are different attributes held by global cities that are not met by Orlando. For instance, New York is appreciated as a global city as it is the greatest receiver of capital flows and service export in the world. Orlando as a city has nothing great that it can be appreciated on a global scale other than regionally, within the US. Furthermore, some of the attributes that make a city be recognized on a global scale include having a worldwide view of leadership, legacy of global orientation, and establish distinct global position through distinct economic specialization. Furthermore, global cities have to embrace a rich culture due to its diverse population with people from different parts of the world and be centers of knowledge and innovation. Moreover, the cities have to have well-designed infrastructure that will allow the city to have an international connectivity. Therefore, we can conclude by suggesting that Orlando is not a good example of a global city for reasons mentioned above.
References
Kloosterman, R., Beerepoot, N., & Lambregts, B. W. (2016). The Local Impact of Globalization in South and Southeast Asia : Offshore Business Processes in Services Industries. Abingdon, Oxon: Routledge.
Manolache, E. (2013). The Impact of Globalization of the Evolution of Urban Systems. New York: Publishers, New York.
Marr, S. (2016). Worlding and wilding: Lagos and Detroit as global cities. Race & Class, 57(4), 3-21.
OECD (2006), Competitive Cities in the Global Economy, OECD Publishing, Paris.
PPIC, 2003. How globalized is California’s economy? . Retrieved from http://www.ppic.org/content/pubs/rb/RB_603HSRB.pdf
Vormann, B. (2015). Global Port Cities in North America : Urbanization Processes and Global Production Networks. New York: Routledge.
