Globalization: The Most Powerful Force in the World

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I. Introduction

‘Globalization’ has been defined as “a phenomenon by which economic agents in any given part of the world are now affected by events that occur elsewhere than ever before.” Since the end of World War II, there has been a significant increase in economic growth and the standard of living as globalization has become a dominant force. However, globalization has negative implications as well in which it has contributed to the large disparity of wealth, and created a volatile market environment. Skeptics argue that globalization has “passed its peak” in which national governments have turned to protectionism in order to reduce its negative effects. Advocates of globalization argue that the integration of markets is ultimately irreversible, and attempts to block globalization have resulted in detrimental effects not only to global economy, but to domestic economy as well. This paper will argue that globalization has not yet reached its peak. Through the examination of arguments made by both skeptics and advocates of globalization, this paper will show that the recent global economic crisis has not reversed the phenomenon, but rather, has contributed to the rise of a new globalization.

II. The Rise of Protectionism

The 2007-2009 global economic crisis demonstrated the severe consequences of liberal globalization, and ultimately questioned the architecture of the economic world order that was established to avert such instability. The financial meltdown was a result of extreme moral hazard in which individuals took extensive risks in the market in order to pursue their self-interest. This financial collapse uncovered numerous institutional and governance failures within the global structure in which deregulation n...

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...nomist on April 15th, 2011 from .

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Eichengreen, B. (2002). “The Globalization Wars” Foreign Affairs. 81(4). pp.157.

Ostry, S. (2006). “The World Trading System: In the Fog of Uncertainty”, Review of International Organizations. 1(2). pp.148

Cooper and Bradford, A. & Bradford, C. (2010). “The G20 and the Post-Crisis Economic Order.” Conference for International Governance Innovation. Retrieved on March 16th, 2011 from .pp. 8

Erlanger, S. (2008) “Sarkozy Stresses Global Financial Overhaul“ The New York Times September 25th, 2008. Retrieved on April 15th, 2011 from http://www.nytimes.com/2008/09/26/business/worldbusiness/26 france.html>.

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