The Importance Of Globalization
This shows that there is an interdependence between nations created by globalization.
The war example might seem extreme but I think it makes a pretty good point. I assume that as countries get connected it is indeed less likely to fight another nation since you know that your economic partners live there. How likely is for one country to invade another, if both have big companies in each other country? Would China invade the US and destroy universities where their own people study?
What I want to show is that the economic globalization leads to a bigger dependence between countries, not only economic but also political. As they seek for a deeper level of economic integration countries sign trade agreements. These agreements contribute to an `institutionalization’ because there is a need for regulation. A perfect example of this is the WTO: the world trade organization whose main goal is to get states to agree with changing their domestic laws, in order to lower tariffs and non-tariff barriers to increase international …show more content…
Some may argue though, that the world has been able to grow and become connected without much governance and so political globalization is not necessary.
I cannot agree. Perhaps it did not seem to matter much when the world was “smaller” and transactions were slow and limited. But that is definitely not the case anymore because, as we have seen, countries are dependent on each other. Either because of economic trade or because there are global problems that require global solutions.
Although I think political globalization is inevitable, it certainly won’t be easy. Global governance will be a tremendously difficult task due to the divergence in culture, interests and the different sources and degrees of power between the actors of the process, the “diversity” that Rodrik talks about.
Still, just as people and their organizations and institutions have come so far to construct the global economy as known today, I believe that it will happen through the influence of important global actors like transnational corporations and institutions that push for political