Is Globalization Good for the United States?
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Is Globalization Good for the United States?
Accordingly, the force of globalization has necessitated considerable effects not only in the United States, but also in other major parts of the world. Every sector of the foreign economy has experienced a rush especially in the adoption of different structures such as global accounting policies. In addition, disparate societies have become widely customized towards other foreign cultures due to various dissemination platforms such as social media and the internet as a whole. Furthermore, both multinational corporations as well as small and medium enterprises (SMEs) have gained new insights into areas such as management and strategy in order to enhance a competitive edge over other international rivals. However, focusing on the subject at hand, has globalization elicited a positive impact on the United States? Even though the concept has made it easier for America to traverse different economic borders in order to further its financial superiority, it is still important to determine whether globalization is good for the country.
On the positive side, globalization has facilitated economic success for the American economy. Certain sectors in the country have become profit-making platforms based on the products and services they supply which are adaptable in different regions. The entertainment sector is one of the largest gainers in relation to the imposition of the respective force. Indeed, various music artists and actors have been capable of gaining huge financial successes due to the commercialization of their composition not only in America, but also in other parts of the world. The trickle down effect of these global accomplishments is evident based on further engagement in non-entertainment ventures. Musicians such as Sean Combs have asserted positive effects on America’s economy by enabling entrepreneurship opportunities in other sectors such as the textile industry, the food and beverage sector and other related segments within the American market (Bertho, Crawford & Fogarty, 2008).
Apart from the influence on entrepreneurship, globalization has established a myriad of opportunities and competences based on the development of open markets. Indeed, businesses are currently capable of effective communication with their suppliers, partners, clients and other imperative stakeholders. Additionally, local producers are able to sell their commodities rapidly in international markets at cheaper costs. For example, technology giants such as Apple and Microsoft have become dominant players in this particular market globally due to the sale of different gadgets such as smartphones, personal computers and laptops (Bertho, Crawford & Fogarty, 2008). The same also applies for other countries such as Japan, which have established positive trade relations with America due to the products and services they avail. Irrespective of these positive implications, globalization has also necessitated negative influences on America. For example, the United States has established novel risks due to high levels characterizing the integration of local and domestic markets (Mourdoukoutas, 2011).
Apart from these uncertainties, globalization has also influenced the ascent of strong competitors, which further limit the success of American companies operating within distant boundaries. For example, Apple Inc, even in the revelation of its new product, iPhone 5C, has received intensified competition from other global firms such as Samsung, which have secured market leadership in various remote markets. In addition to this, Samsung has also penetrated into Apple’s domestic market further limiting its market share. Furthermore, products have faced significant imitation, gain and price swings as well as destruction (Mourdoukoutas, 2011). Companies that once enjoyed globalization’s benefits are presently experiencing unpredictable and unbalanced demand. This has caused rapid commodification of the products that they offer which has left them with insignificant or null pricing advantages over new rivals.
In conclusion, globalization poses positive implications for the American economy. By enabling international commercialization of local products and increase in entrepreneurship ventures, the force has allowed America to penetrate distant markets. Moreover, it has enabled the American economy to gain considerably especially in terms of positive trade relationships. However, in comparison to the negative impacts, globalization’s defects largely outweigh the benefits based on the way they affect the economy unconstructively. By allowing penetration of its local market from other foreign corporations, American firms have experienced intensified competition, which has affected their profitability.
References:
Bertho, M., Crawford, B., & Fogarty, E. A. (2008). The impact of globalization on the United States. Westport, CN: Praeger.
Mourdoukoutas, P. (2011). The good, the bad, and the ugly side of globalization. Forbes. Retrieved from http://www.forbes.com/sites/panosmourdoukoutas/2011/09/10/the-good-the-bad-and-the-ugly-side-of-globalization/