GlobalizationEssay Preview: GlobalizationReport this essayWe stand on the brink of great changes. From an energy crisis to new technology to the war on terrorism, the business world reels from vigorous upheavals and new innovations. Yet what will be the issue that will truly define business for the next twenty-five years?
The growth rate experienced by China after it reduced its trade barriers at 1999 is jaw-dropping. Indeed, in the past year, ChinaÐŽ¦s total exports and imports are 1.47 Trillion USD which is a 312% growth comparing to 2000ÐŽ¦s 0.47 Trillion, and ChinaÐŽ¦s GDP grows apace. Yet will the 21s century be all about China, or, in fact, is something deeper at play?
The growth of China is only part of a crucial trend: globalization. Under globalization, developing countries enjoy unprecedented information and resources support the basic building blocks of Comparative Advantages. Today, India, Russia, Eastern Europe, and the Middle-East are developing rapidly thanks to outside help and internal ingenuity. The potential for such states is near-limitless: India and Russia both have a large amount of resources and undeveloped regions, while the city of Dubai in the United Arab Emirates will soon become one of the most important financial centers in world. Led by China, ÐŽ§The WorldÐŽ¦s FactoryÐŽÐ, such countries are playing a key role in bringing the present business system into a totally new era, and the ramifications of their growth extend well into the First World.
Globalization has caught up the entire world in its sway. Countries cannot simply choose whether or not to follow the globalization trend. Emerging from domestic contractions, entrance into new markets is a crucial step for many nations on the road to growth. Moreover, such developments will catalyze relations between such developing countries, transforming the global power balance. Indeed, in the recent past, China has signed new trade agreements with Russia, and divisions which once separated Eastern Europe are now being overcome, as different countries trade together and enter the EU. Thanks to globalization, the global constellation of power has shifted and democratized. Against this background, the role of developed countries has shifted from that of being drivers to now being passengers — whoever is not willing to go along with the trend of developing countries will be left behind and therefore fall into an difficult period of recession. Now, more than ever, countries
are on the brink of social disintegration and can no longer be expected to follow the trends. This is not something to be surprised about.
These trends are linked to globalization, a trend that has been unfolding through the financial crisis. For decades, countries have been developing and in turn, being part of the global ‘global community’. Now, there is an opportunity for countries to expand their global footprint. With globalization, emerging economies and the rich countries will start to show their global share of the market. China will also, for years to come, be able to expand its influence on national economies and the world financial markets to a level not found before.
In the process, the rapid globalization of the world environment will become a challenge to many developing countries and their populations. Thus, with the development of new energy technologies, the development of transnational corporations is the key for creating an environment that takes an even more challenging set of conditions.
The process of globalization has the potential to transform the world. Over the past 30-45 years, many countries have developed a strategic partnership, like the Asian Infrastructure Investment Bank (AIIB). The AIIB helped to expand the market, as well as expand opportunities for the rich and powerful in economies, and the global leadership role played by such initiatives has played a positive role in advancing the economy. Unfortunately, the results of globalization still have not been reflected in the global banking system. Despite its successes, as many are now discovering, the banking system’s fundamental structure has changed enormously. By making these changes, development countries will likely regain their role as regulators of global economic and financial markets. Therefore, we can expect the development of the global banking system to be a key factor in shaping the international economic climate. From a strategic point of view, in contrast to other international financial institutions, China is more of a global power and thus will act to control the global banking system.
In this regard, what China is seeking is a major shift in foreign policy. By building ties with Asia’s key political parties, China is expected to increase its influence in all fields of government by supporting these political parties and encouraging the development of global leadership. This is the only way Beijing can lead the region to a more stable and prosperous future and will increase domestic political pressure in the absence of serious political reform. This will make Chinese influence in the region more attractive than ever before. While China has not yet achieved its major policy goals in Asia’s three major geopolitical zones, it has been expanding alliances and investing more resources in promoting international relations.
With the development of political and domestic influence, China is also expected to deepen its regional and global control. Since the 1990s, the country has expanded its influence worldwide on multiple fronts, from its defense of its self-determination in the Asian theatre to its political participation in the Asian and Pacific stage.
We can expect China to create a global presence in the region not just by expanding its influence as a player but also by building alliances with other member states.
As the country transitions from an energy intensive economy to an open and free economy, the importance of regional power may increase.
China is also expected to forge alliances with other emerging nations over the coming period. As China’s market power grows, and as other developing countries grow their share of the market and become richer, it will also become more likely to act to make that change.
With China increasing its influence and strengthening its international relations, it will become also more likely to increase its influence as a partner in the global financial system. The process of increasing our regional power may also make that move easier as China will become more active in foreign economic matters.
Given the growing significance of regional power, China will be willing to engage in the expansion of its foreign relations, to maintain its influence in the world and to develop its influence in the world. In addition it will be possible to develop the political and economic dynamic