Globalization is the process characterized by the increase in transactions and cultural and political interactions concerning goods, money, cultures, persons, signs, and symbols on a global level. The phenomenon also entails the movement of merchandise, culture, money, knowledge, people, and information. Globalization has resulted in an increased economic, social, cultural, and political interconnection around the world. Although many people think of globalization in economic terms considering it the global marketplace, it has many political and social implications, as well. For instance, much of local communities’ population associate globalization with modernization, which is the change of “traditional” communities into “Western” industrialized societies. However, at the international level, globalization is viewed in terms of its challenges to government roles in the global economy and international affairs. In this regard, modernization is a continuous process the societies undergo to transform from traditional to modern or industrialized societies. There are modernization theories that try to investigate social variables that have played key roles in the social development of countries and societies and to elaborate social evolutionary processes.
Origin of Globalization and Modernization
Globalization and modernization processes originated in the ancient India that had put up commercial channels with other regions. An exchange of food crops, the establishment of worship centers, and exchange of domestic animals resulting in environmental globalization have followed these trade processes. In the 13th century, the society embarked on international trade through ocean transport followed by trade regulations. By this time, the slave trade had become the major form of cultural globalization, especially in the 17th century. Global economics improved hence influencing countries to acquire tradable products. As a result, some countries adopted protectionist policies purported for national development. In the mid-18th century, capitalism started in Europe and America speeding the fall of colonialism and developed democratic governments. Consequently, nations developed trade networks due to the availability of resources in their territories, which led to the increase in import and export between friendly countries. As such, trade relations required forms of regulations and controls, resulting in the establishment of the International Monetary Funds and the World Bank. The paper discusses the effects of globalization and modernization on the US, UK, and Asia.
Effects of Globalization and Modernization on Asia
Globalization and modernization in Asia have brought about an intense debate, especially in Islamic countries that have negatively responded towards these processes. These countries fervently opposed globalization and modernization due to lack of previous Western ideas, culture, and institutions in the Islamic Middle East. They believe that globalization and modernization destroy local societies and block them to flourish and survive in new forms. In fact, most regimes, intellectuals, and opposition movements are anti-globalization oriented. In Asia, globalization and modernization have mainly affected regional security and sovereignty.
Effects of Globalization and Modernization on Regional Security
Globalization has affected economic and political conditions within Asian states, hence transforming relations among them. Globalization has resulted in greater regional stability and deeper economic integration, hence reducing the potential for conflicts as it gives incentives to cooperate. On the other hand, globalization aggravates long-standing tensions resulting in challenges that hinder regional government to cooperate. They include regional security concerns associated with globalization and modernization.
First, globalization has caused new threats to the region’s food and water security, crimes, migration, and economic reliance. In particular, modernization has impacted economic growth; therefore, a need arises for Asian countries to import energy. Consequently, the region’s increased energy use has resulted in environmental degradation and social unrest. The growing Asian economy coupled with a significant increase in the region’s population has strained the available water and food supplies. Many Asians have opted to migrate to other countries and find rescue, especially during financial crises. Additionally, lack of food, rapid population growth, and ease transportation and communication have caused drug and weapon trafficking, terrorism, and organized crime networks.
Second, globalization and modernization have weakened regional institutions. For instance, Asian financial crisis and other globalization forces have enfeebled region’s multilateral institutions such as Asia-Pacific Economic Cooperation (APEC) and Association of SouthEast Asian Nations (ASEAN) due to the impacts of new concepts of regional security interaction brought about by globalization.
Third, globalization and modernization have resulted in the shift in the regional power balance because of the rapid economic growth that has speeded the global balance of power compared to the past. For instance, deepening economic integration has significantly contributed to the development of regional economic blocks resulting in competition for influence and power. Lastly, globalization has led to the expansion of the military roles to curb traditional threats and the increasing internal conflicts in Asian countries. Therefore, there is a need for military organizations to assume new roles a trend that competes with the available financial problems.
Impacts of Globalization and Modernization on the Asian Sovereignty
Although many people view modernization and globalization as a threat to national sovereignty, most Asian countries have decided to embrace the global economy. For instance, during Asia’s boom years, most countries viewed globalization as a tool that strengthens national power. The fact that Asian governments participate in the global economy without changing political domestic practices and structures strengthened this perception. Additionally, globalization and modernization have caused division within Asian communities with some countries benefiting from globalization more than others do. For example, Indonesia’s ethnic Chinese is a group that has benefited from globalization more than any other group. Lastly, democratic states fear financial crisis less compared to authoritarian regimes because democratic government embraces accountability, the rule of law, and transparency as their core norms as opposed to authoritarian regimes.
Impacts of Globalization and Modernization on the US
Over decades, impacts of modernization and globalization on the United States are the most debated economic issue, which has affected the free flow of services, goods, and factors of production between countries. In the US, workers, especially those whose jobs are transferred to foreign locations, mostly oppose globalization. For example, over the last five years trade has greatly grown in the United States and the developing nations such as China. As a result, the wage for a non-educated American workforce has reduced while that of college-educated workers has substantially increased.
Effects of Globalization and Modernization on the US Productivity
Globalization has resulted in a gradual increase in the United States’ productivity. For instance, offshoring has an impact on the US information technology (IT). Global production of IT hardware through offshoring computer manufacturing companies such as Dell Computer Company in China has reduced prices of telecommunications equipment and computers by approximately 25%. Consequently, the price decline has facilitated the spread of IT throughout the United States’ economy, hence raising both the country’s growth and productivity. Secondly, the offshoring offers potentially lower value of IT services and software, which has further promoted the spread of IT and new company processes that utilize cheap IT. Moreover, globalization has created job opportunities for the United States workers to develop and implement IT packages for numerous companies and industries. The increase in productivity has resulted in production of cheap products and services that Americans purchase at lower prices because cheaper labor is readily available for manufacturing the products. Although globalization and modernization have caused industrial evolution, many Americans have lost their job opportunities to foreign employees, who work for less pay and in worse conditions. It means that the American workforce competes with foreign workers in businesses and any place with the major trade deficit. Lastly, the United States is currently experiencing a major trade deficit attributed to globalization.
Impacts of Globalization on the US Economic Opportunities
In the United States, globalization has enhanced free trade that in turn creates economic opportunities by assisting trade partners in becoming economically stable. A growth in income of the American trade partners has resulted in a corresponding growth in the countries’ demand for goods and services. Most of these countries cannot produce products to meet their demand; thus, they rely on imports from the US. However, sometimes the US misses an opportunity to export products to these countries due to trade barriers.
Effects of Globalization and Modernization on the UK
In the United Kingdom, globalization and modernization processes have both negative and positive effects. However, the positive impacts of the two processes outweigh the negative impacts. For instance, globalization and modernization enabled the country to compete internationally. The increasing competition has enabled the United Kingdom to stimulate new technological developments that have increased market openness. It means that globalization has increased the UK’s interdependence and integration of the global economy. As a result, the UK has realized a substantial increase in capital and labor movement, as well as the rise in trade.
Globalization and modernization have influenced the United Kingdom in the following ways. First, they have created a comparative advantage in the UK’s economy. For instance, UK companies have benefited in the manufacture of goods due to possession of a comparative advantage. As a result, these firms sell their goods at lower prices. It means that the UK can produce goods and services at a lower cost than other countries.
Second, globalization has led to the shift in the United Kingdom’s economic sectors. For example, the UK has no complete comparative advantage in most of its manufacturing industry because most of the developing countries have cheap labor force. Therefore, they can manufacture goods at lower costs. Additionally, the country is experiencing structural unemployment that can only be offset if the country decides to specialize in areas such as insurance and financial services. Globalization and modernization have also resulted in an increased competition among the domestic companies. In this case, some companies gain market monopoly; however, they face international competition, hence reducing the price and costs for firms.
Third, globalization and modernization impacted rural and urban migration, as well as migration of people from foreign countries to enter the UK’s workforce. It has helped the United Kingdom fill the gap in job opportunities. However, migration has greatly stressed the UK public services and housing due to the large net migration of foreigners.
Lastly, globalization and modernization have affected the global economic cycle that in turns influences the UK. For instance, recession in Europe has affected the United Kingdom because it relies on the EU when exporting most of its goods. The global credit crunch also had adverse impacts on the UK’s economy because the financial crises that might occur in other countries affect the UK.
Globalization is the interaction of people around the world, leading to social, economic, and political interconnections. On the other hand, modernization is the process of shifting from pre-modern into industrialized societies. To this end, globalization is perceived in terms of the challenges it poses to the government in the global affairs. Globalization and modernization originated in Ancient India in the 13th century. An exchange of food crops and domestic animals, as well as the establishment of worship centers, followed these processes. Afterward, some countries enacted protectionist policies that advocated political development and end of colonialism.
In the United States, globalization affects the free flow of goods and services, the country’s productivity, as well as the wages and salaries because it has enhanced the trade relationship between the US and other countries. As a result, immigrants offer cheap labor posing a threat to the American workforce. Therefore, globalization affects both the productivity and economic opportunities. For instance, offshoring companies have lowered the price of IT services and software making some of the Americans lose jobs to foreign workers who are willing to offer IT services at cheaper prices.
In the United Kingdom, globalization and modernization have both positive and negative impacts. However, the positive effect outweighs the negative one. Some of the constructive effects of globalization include the comparative advantage of UK firms over competitor firms and global economic cycles. On the other hand, increased competition has been witnessed since UK firms no longer have a comparative advantage due to the competition from international firms. Additionally, the UK’s net migration is very high, hence posing a challenge to public facilities and UK housing.
Most of the Asian countries reject globalization and modernization to avoid erosion of their Islamic culture. Therefore, globalization has adversely affected Asian‘s sovereignty and regional security. For instance, globalization has led to rapid population growth associated with a high crime rate. Additionally, globalization has weakened regional institutions such as ASEAN and APEC due to the emergence of new concepts of regional security. The region is also at a risk of a shift in the power balance. In particular, most of the Asian countries view globalization and modernization as a cause of national sovereignty. It is evident during the Asian economic boom that made most of the states’ governments involved in the global economy without necessarily altering their current domestic political and economic structures.
Technological advancement and improved global communications propelled globalization and modernization processes in the United States, the United Kingdom, and Asian countries. For instance, international immigration and travel have played a significant role in the destruction of “pre-modern” or traditional boundaries between communities. Currently, globalization and modernization processes have resulted in the growth of multinational corporations and the introduction of electronic commerce in many nations. There are several ongoing debates about the negative and positive effects of globalization and modernization processes. Many people argue that globalization can make communities richer through trade and expansion of information and knowledge to people around the world. However, proponents of this debate perceive globalization and modernization as processes that the rich utilize to exploit the poor. Moreover, they think modernization is a threat to pre-modern or traditional cultures because the process transforms these societies to modern societies resulting in the erosion of traditional norms, values, and culture.
It is clear from the discussion that the positive impacts of globalization and modernization outweigh the negative ones. Hence, these processes are crucial to the world’s economy because they lead to markets that are more efficient, stabilized security, wealth equality, and increased competition. It means that globalization has given the US, the UK, and Asian countries a variety of opportunities. For instance, globalization has enabled people to link up economies, cultures, and communities towards creating a highly interconnected world.