Name: Omonullaev Mukhammadrasul

Subject: International Economic Integration

Topic: What is Globalization

Globalization is a crucial and relatively recent trend in the world, impacting both businesses and

governments globally. The assumption that economic and financial globalization will persist is

widespread. There are two distinct camps regarding globalization: some nations and individuals

perceive it as a positive influence on businesses, governments, social structures, and overall

societal aspects. Conversely, others believe that globalization has a negative impact on our

culture and society.

In recent years, the international order has faced criticism, particularly concerning the concepts

of globalization, trade, and investment. Despite this, data available to us indicates that

globalization is not coming to an end; rather, it is enduring and likely to persist. Not too long

ago, it seemed that there were no limits to global economic and financial globalization. For

decades, the apparent benefits of globalization have been substantial.

The interconnection of production, consumption, and investments is paramount for consumers,

providing a variety of choices at different price points, particularly attractive ones. This dynamic

has facilitated globalization's benefits, allowing it to expand markets and enhance the efficiency

of product provision. Consequently, global markets strive to broaden access and reduce costs for

both private and public entities worldwide.

Furthermore, what's truly fascinating and extraordinary about globalization is the accelerating

shift toward remote work. Remote working is very convenient for people, and it also transcends

national borders, making them largely irrelevant in the context of remote work. However, while
globalization has improved market efficiency, policymakers, often referred to as policy makers,

lost sight of the potentially dire consequences and adverse outcomes of global distribution.

Many communities and nations were left behind, leading to a widespread sense of

marginalization and significant problems such as alienation. The result was a backlash against

widespread globalization, with visible political actions and political twists playing a key role in

events like Donald Trump's election to the US presidency in 2016. Donald Trump capitalized on

the discontent with globalization, aiming to bring back US manufacturers and companies to the

USA. He advocated for products to be made in the USA again, leading to a tariff war with China

and causing a division between the two economic giants.

In addition, Western consumers, who are deeply concerned about human rights violations and

environmental issues, chose to take a stance against sanctions on Russia. They also opposed the

weaponization of the international payment system. This complex interplay of economic,

political, and ethical considerations has shaped and continues to influence the dynamics of

globalization.

Globalization is shaping our world and is emerging as a watershed moment for the global

economy, akin to the Bretton Woods era and the unification of Germany. It has played a crucial

role alongside the exchange rate systems and faced challenges such as the almost collapse of

banks during the financial crisis. However, over the past 12 months and two days, a significant

shift occurred, marking the end of a nearly decade-long era of cheap money. Banks grappled

with the impact of rising inflation in many Western countries.

In 2022, the cost of living reached a 40-year high, becoming a substantial burden for people

worldwide. This led to a growing discontent against globalization, particularly among

nationalists who advocated for a return to a more stringent monetary policy. The COVID-19

pandemic, which shocked the world in early 2020, added to the challenges. The World Health

Organization (WHO) played a pivotal role in advising the world on measures like lockdowns,

contact testing, and periods of isolation.

The economic and social costs of lockdowns were immense, prompting doubts about the origin

of the virus, particularly regarding the Wuhan laboratory. The tensions escalated further with

Russia's invasion of Ukraine, fluctuations in energy prices, and strained relations between the

U.S. and China. Despite these challenges, globalization is not finished, especially for Western

corporations and their investments. China is likely to remain the world's largest exporter, raising

concerns for other countries.

While countries will continue to trade, there will be increased selectivity and caution in choosing

strategic partners. Competition among states may intensify. However, scenarios like Britain

facing another pandemic or Germany struggling without gas supplies seem unlikely. The U.S.

relying on Taiwan for critical resources also appears improbable, given China's aggressive stance

towards Taiwan.

The complex dynamics of globalization impact how nations interact economically, socially, and

in terms of hierarchy and programs. Monitoring globalization is essential, especially considering

the optimism of the 1990s when war between countries, particularly in the context of trade,

seemed improbable. The current landscape requires careful consideration of economic, social,

and political factors in navigating the intricate web of global relations.

Globalization is immensely important and plays a crucial role in our lives. One might argue that

it has become the international system, effectively replacing the Cold War paradigm. Viewing

globalization in this light, it becomes evident that it represents the new and the fresh.
If our world were composed solely of microchips and markets, one could conclude that these

elements alone suffice to explain everything about globalization. However, our world is not only

comprised of microchips and markets; it is also made up of men and women with peculiar habits,

breaking traditions, and harboring unusual longings. Moreover, it encompasses unpredictable

and inspiring aspirations and motivations. Consequently, relying solely on the explanation

involving microchips and markets falls short in capturing the complexity of this vast concept.

Globalization is, in essence, an abstract concept. Thomas Friedman, while contemplating this on

a train in Japan in May 1992, introduced this concept. Enjoying a sushi box and traveling at 180

mph, he was in Tokyo for a reporting assignment, including a visit to the Lexus luxury car

factory. This visit left a lasting impression on him, considering it one of the most memorable

tours he had ever taken.

The Lexus factory, producing 300 cars daily, employed 69 human beings and 310 robots. Even

in the age of robots and technology, humans remain an indispensable part of our lives. At the

factory, robotic trucks performed various tasks, occasionally beeping at people to move.

Friedman was captivated by the spectacle, witnessing the collaboration between humans and

technology.

In essence, globalization enables us to explore the beauty, excellence, magic, the extraordinary,

and the anomalies of other worlds and the unknown. It facilitates contact between different parts

of the world, fostering an impressive exchange of ideas and cultures.

The term "globalization" is a powerful one, albeit having become somewhat cliché. However,

clichés often contain a level of truth, genuineness, and validity. In this case, there is no doubt that
globalization has had profound effects on the global economy, social structures, and politics. The

transformation it has brought about in the world is immense and beyond imagination.

Globalization extends beyond economic aspects; it has given rise to a cultural dimension. This is

a direct consequence of the significant increase in worldwide communication. It is essential to

recognize that economic globalization goes hand in hand with cultural globalization. It prompts

us to consider the importance of certain aspects of globalization.

For instance, German investors communicating in English with Chinese officials exemplify an

essential aspect of globalization. Furthermore, people from remote corners of the world can now

connect with others, illustrating the direct implications of globalization. These implications, both

direct and indirect, are not only substantial but also visible and potent.

When delving into direct implications, we find remarkable outcomes. Simultaneously, indirect

implications, though less apparent, are equally influential. It is crucial to acknowledge and

explore these various implications.

Civil society is reliant on freedom, civic virtues, and a suitable culture. This idea finds

expression in Bennett Company's advertisements. This perspective holds factual merit. It is

reasonable to argue that the world would be a better place if everyone collaborated

harmoniously, supporting one another to shape globalization positively.

Despite this optimistic view, there is an associated fear with globalization. The concern revolves

around the potential homogenization and destruction of the diversity of human civilizations. This

fear resonates with many, underscoring the need for careful consideration in navigating the

complex implications of globalization.

Now, moving on to the Cold War's conclusion, governments, and global companies initially

believed that strong global economic connections would lead to crucial stability in the world.

Stability is indeed of utmost importance in the world. However, the Ukraine war and the

pandemic were two major events that pushed the world in the opposite direction, shattering these

ideas. This is why significant parts of the global economy, along with American and European

officials, currently impose sanctions on key sectors of the Russian economy. Russia stands as the

11th largest economy globally, making it vital for globalization and global commerce. Hundreds

of Western companies have halted their operations in Russia.

Due to the pandemic, companies are also reorganizing their operations, obtaining goods, and

adjusting to increasing costs, particularly due to unexpected delays in global provisions and

supply chains. Consequently, Western officials, especially prominent executives, are

reconsidering their approach to doing business with China. China, as the world's second-largest

economy (a surprising fact for many, including myself), brings forth political tensions and

concerns about Chinese human rights that should be taken into consideration.

In the aftermath of the Cold War, economic and foreign policies by the US and its supporters

underwent changes and were challenged by rising powers like Russia and China. Edward Alden

suggests that we are heading towards a more politically divided world. While globalization and

economic interdependence may reduce conflict, some argue against it. Opposition to

globalization gained support and momentum during the Trump administration, particularly

through its trade policies and the fervor of the American people, known as "American First."

Simultaneously, the progressive and radical left gained power in the United States.
Putin's invasion of Ukraine was shocking and introduced a lot of uncertainty to the world. This

uncertainty may contribute to Trump's potential re-election, as there is a rise in populism and a

shift in political dynamics.

Reference

Mohamed el-Erian, “From Near-Shoring to Friend-Shoring: The Changing Face of

Globalization”, The Guardian, May 9, 2023

Larry Elliot, “The Pendulum Swung Against Globalization in 2022 – and That’s No Bad Thing”,

The Guardian, December 26, 2022

Peter Berger, “Four Faces of Global Culture”, National Interest 49 (1997), pp. 23 – 9

Tom Friedman: The Lexus and the Olive Tree, (New York: Anchor Books, 2012)

Introduction, pp. xi - xxii

1, “The New System”, pp. 3 – 16

3, “The Lexus and the Olive Tree”, pp. 29 – 43

Benjamin Barber: Jihad vs. McWorld: Terrorism’s Challenge to Democracy (New York:

Ballantine Books, 2001)

“2001 Introduction”, pp. xi – xxxii

“Introduction”, pp. 3 – 20

Robert Reich, Saving Capitalism: For the Many, Not the Few (New York: Alfred A. Knopf,

2015)

“Introduction”, pp. xi - xvii

Edward Wong and Ana Swanson, “Ukraine War and Pandemic Force Nations to Retreat from

Globalization”, The New York Times, March 22, 2022