Examining the Impact of International Institutions on Globalization

This assignment provides an in-depth analysis of globalization and the roles of international institutions such as the IMF, WTO, and World Bank in facilitating this process. It examines the challenges facing the European Union, including Brexit, migration issues, and economic pressures. The assignmen...Read More

Student Name 01 Mar 2019
1. Globalization can be facilitated only if the national governments are willing to
participate in that process. List each of the three international institutions and the
roles each one can play to be a part of this facilitation process?
The organizations that play to be a part for facilitating globalization includes (i) International
Monetary Fund (IMF), (ii) World Trade Organization (WTO), and (iii) World Bank (WB). The
IMF institution is based on mutual trust and agreement between the governments of more than
180 countries, as members. The relevant information demonstrating how globalization can be
facilitated are available on the official website. In particular it increases economic governance,
for example by promoting use of standards of practices for governance of public and private
sector as well as financial management. It recognizes the value of civil organization facilitate
collective action and support at grass root level. The developed framework ensures that the
member countries should be transmitted among each other to fight against money laundering and
strengthen the financial system at international level. WTO is another “global government”
having vast authority and power, and is linked with 134 member nations. This institution put
forward rule-based regime US policy measures to govern the economic globalization. These
policies can also be described as Democratic processes which ABS do expand the global
business enterprise and commercial interests of all types. Furthermore, the policies also work on
behalf of existing challenges for globalization, including the environmental protection, labor
rights, consumer and social right, human rights, and national sovereignty. Likewise, World Bank
is the largest financial institution providing the assistance for economic development at global
level. The objective of this institution is to provide technical and financial assistance, especially
in the developing countries to overcome challenges such as poverty, sustainable development
education and health services, as well as basic infrastructure. They also provide assistance via
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lone such that unrestricted foreign trade and international market can be possibly assessed by
developed as well as developing countries.
2. Although the European Union is the most advanced form of regional integration, it
is currently facing a challenging time. What are some of the major challenges
facing the EU?
European Union consisting of 28 member states is one of the unique partnership the drinks
harmonize the laws and policies, on diverse issues related to politics and economics. Despite of
the improvement in economic condition since 2017, did exist increase societal and economic
pressure due to rise of certain political parties are populists that have “euroskeptic” attitude.
Varieties of internal and external, the major issues which complicated economic condition in
European stability includes:
 The “Brexit agreement”, that results in two UK from EU.
 Issues related to law and democracy in Hungry, Poland, Greece, Ukraine and associated
EU member countries.
 Concern related to migration and societal integration.
 Resurgency issue of Russia.
 Increase the threat of global terrorism.
Across EU, the policy priorities are based on the above mention challenges, among which the
social status have high priority. In particular, the first priority is on the influx of refugees,
followed by the concern of increased unemployment rate. On the people’ agenda side, the
primary concern be focusing on the factors that can boost the economy. Further, down the line,
the concerning issues include fighting against terrorism and predicting the community members
as well as reducing sovereign debt to secure the financial situation of member states.
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Importantly, from the prospect of financial stability, EU is slow in applying the lesson learned
from financial crisis (Charron, 2016). For example, there exist only a single supervisor for the
banking union and a common EU rule for managing the banking issues; which can create
problem is any financial crisis appears in near future.
3. NAFTA has improved Mexico and US trade and investment, yet bilateral trade
between the United States and China is greater than with Mexico. Why is this true?
China and Mexico are the top trading nation with US, which have 15 and 17% of US global trade
volume, respectively. Comparing the difference between economies of the two nation, the prime
factor that enhances the trade between US and China is the labor charge. In particular, the labor
charge in Mexico is approximately three times higher than that of China, along with higher ratio
of experienced laborers for various sectors in China. it is also important to note that maximum of
the export from China comprises of products related to personal computers, food, household
consumption goods, intermediate as well as capital goods. On the other hand, the trade with
Mexico mainly comprises of manufactured cars, engine and machinery as well as food products.
However, the impact of tariffs from China over the import of goods from US is likely to have
minimal impact on the overall economy of US. This is the key negotiation factor that determines
the bilateral trade relationship between US and China, compared to that with Mexico. It is also
important to note that the increased export volume from US to China aids in annual growth for
import prices from 1.4% to current 3.1%, comprising of the overall consumer prices. Overall this
fact generate additional $600 billion annual income for US which is the major motivation for
extended trade relationship with China.
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4. List each of the four dimensions of culture studied by Geert Hofstede? How do
Gannon’s cultural metaphors differ from how Hofstede uses culture to classify
countries?
The four dimensions of culture, individualism collectivism; avoidance of uncertainty, orientation
of masculinity and femininity, and the power distance indicating the social hierarchy strength.
The first difference between Hofstede analysis and Gannon's cultural metaphors is related to the
theory of individualism and collectivism. In this context, Hofstede's analyzes the dimensions that
can be useful for distinguishing between nations. However, these dimensions do not describe the
individual personalities they cannot differentiate between members of any society. In contrary,
Gannon's metaphor focuses on the criteria which determines the overall effect on group, where
the decision was considered at individual level. In this way, this analysis can differentiate
individualism based on this facility within any society. Another difference is link with the
orientation of masculinity and femininity in society. According to Hofstede, “men” are
considered as aggressive and assertive, because of which they have higher status in the society,
compared to “women” who are submissive. On the other hand, according to Gannon's metaphor,
the cultural mindset within the particular mission is an innovative method to compare their
societal structure. For example, based on the individual role in society, he used metaphors to
describe the nation's culture in which Greece and Japan are considered to be masculine.
Similarly, in Denmark and Sweden women were given more preference for job application and
administrative conductance, and hence these nations are considered on the side of feminine.
5. List and describe the 4 key quality measures that make globalization sustainable.
Governance in public and private sectors - The member nations within the trade agreement must
implement transparent policies which can attract the investors for domestic and foreign sector. In
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addition to this clear negotiation and guidelines can avoid challenges related to money
laundering, fraudulent transaction, and high power of bargaining (Petschow, Rosenau & von
Weizsäcker, 2017).
Competitive market - The competitiveness must be in constructive direction, thereby introducing
innovative and effective policies to accelerate the production level, bring low inflation as well as
monetary stabilization, and motivating to raise the talent level to increase the human capital.
Importantly, migrants are key driver of global competitiveness, hence for sustainable
globalization effective policy measures to integrate immigrants is of significant value.
Basic property requirement - The basic requirement in developing nation include the healthcare,
education, as well as food security. In addition to this, such a nation also required significant
investment in sectors like powerful shuffle feel electricity requirement, supply of safe drinking
water as basic necessity, improving the transportation infrastructure to facilitate connectivity,
education system reform improve the skills level of low income country.
Overcoming issues of corruption - to avoid the money laundering and corruption issues, the
governance should increase skillful and anti-corrupt professionals, and ensure internal
investigation and vigilance to make the procedure transparent, and implementing democratic
policies to welcome ideas and thought from all the members for overall improvement in
regulatory and licensing policies. In order to recover the financial challenges based on
corruption, the initiative must be taken together by developed as well as developing countries.
6. Based on Transparency International’s website
https://www.transparency.org/cpi2018 identify the ranking of the United States and
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the top 10 countries with the least corruption. Were you surprised with rankings by
country? Why?
The ranking of United States is with 75-85 points on the scale. This indicates that the corruption
level is managed appropriately, while comparing with rest of the world. The list of top countries
with the least corruption based on the given scale will include Denmark, New Zealand, Sweden,
Finland, Switzerland, Norway, Singapore, Nederland, Canada, and Australia.
It is surprising to find that, Italy have high points of corruption according to the scale, despite of
being a part of European Union and enjoying the agreements of free trade among the member
states (Charron, 2016). The key factor responsible for corruption is the emerging crime rate and
poor policy measures by political parties. As a result of which, not only the domestic
entrepreneurship but also international trade, foreign investment, as well as overall economic
growth are getting affected.
On another hand, it is also surprising to find that United States is ranking in 15 to 20th position, in
the corruption scale. Despite of involvement of high-level media sources and info-graphics to
render clear communication, corruption can be found numerously in government aided sectors.
For example, number of Senate members were found to be involved in bribery in past decade,
and policy corruption was also witnessed in department of justice as well as in journalism sector.
Overall, it can be learned that the human tendency is the sole factor responsible behind
corruption despite of the effort made by clear and transparent governance. In this consideration
the importance required should we on education, communication practices, and overall
philosophy of community well-being to minimize corruption and leading towards sustainable
development across the globe.
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References:
Charron, N. (2016). Diverging cohesion? Globalisation, state capacity and regional inequalities
within and across European countries. European Urban and Regional Studies, 23(3), 355-373.
Petschow, U., Rosenau, J., & von Weizsäcker, E. U. (2017). Globalisation means new challenges
for sustainability. In Governance and Sustainability (pp. 62-66). Routledge.
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