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Globalization in the First World

© Shawn Nicholls

Last week I took a very critical approach to the history of globalization in analyzing the historical evolution of colonialism. Now however I would like to optimistically look at the purpose of the current era of globalization, as well look at a positive example of the system.

Putting obvious consequences and complaints aside, integration is the best term with to define globalization. Integration of what? Everything.

However the dominant goal is the creation and improvement of a single global market, and an increased participation in this market. The most important components in achieving this goal is integrating individual markets, integrating nations, and pushing for increased and improved technology. Over time, as these aspects begin to take place at consistent levels, all areas of global life begin to change. In terms of economics, an increased ease of communication combined with decreased international borders will increase levels of trade and capital flows worldwide. Everything about life, socially to financially, takes place at a faster speed. Technology shrinks transport time and brings everyone who participates in this system closer together. As for politics, they become more and more controlled by the state and are based on the aforementioned economics principles. In the words of Thomas Friedman, globalization “shrinks the world from a size medium to a size small.”

The basis for the globalization theory is that if nations allow the markets to control the flow of economics, and in turn trade and production will become more efficient. The role of globalization is spread this ideal, which is known as free-market capitalism, to every nation in the world. But in order for this to work, countries must first be willing to accept the new system and second nations need to decrease import and export regulations and also decrease border and barrier rules. In order to benefit from the growing global market, you must be an active participant willing to play by the rules.

One example of this transformation is taking place in Europe right now. Nations that compromise the rising European Union have developed a system of free movement of goods and people throughout any of the nations in the union. Travel of citizens is unrestricted and employees can retire in any nation with the same universal benefits. Even more, the union is in the process of integrating a universal currency in the Euro, which will have completely phased out the individual currencies by 2003. This allows companies within the union to complete transactions at a new ease, thus enhancing the profits from trade. Finally, committees decide rules and regulations that affect everyone, instead of individuals.