When taking consideration of globalization, it should comes to the question what is it and how it affects world economies?  The Vice President of Cato Institute, Mr. Tom Palmer defines globalization as “the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result.”  In fact, it impacts on both developed and developing countries, which the economic growth approximated 3% annually.  Therefore, it causes the Federal Governments on tough decision making in improving their economies, foreign investment, and trades.  It does not really effects on Military operations unless the country is declaring war to other foreign countries.  For that reason this paper is only emphasizing on the effects of globalization in a positive and negative aspects.  The new age of globalization is beneficial and harmful depending on how Government and people see it. 

     The developed country Governments should consider carefully in make any decision to deal with foreign investment and trades.  Perhaps, they should use their past experiences to assist the developing countries, and possible considering the future outcome not the present.  In contrast developing countries should be modernized to accept foreign relations and adopt capitalism.  In the recent report shows most of developing countries are usually historical Socialist or Monarchy type of Government.  Obviously, there is nothing wrong with being non-capitalism, but they should to choose what had been proven that work best for the economies.  Obviously, some studies show there are downturns of globalization with negative impacts.  In order to prevent the future negative impact and financial crisis, the Government should analysis the weakness that cause problem. 

    Before the World Trade Center was attacked by Terrorists in September 2001, the globalization was the main subject for discussion in increasingly international economies.  It plays the major role in intellectual and political divides; in order to be well developed nations must undergo through many phrases, and many positive and negative impacts as the results.  There is always tough decision on Government because some problems arise from globalization such as job loss, immigration issues, national boarder protection, and etc.  Sometimes private sectors have problem making decision due to economies downturn.  But mostly the trend in decision making is always to the Government.   In the recent interview President Obama’s Senior Economic Advisor, Mr. Larry Summers by Harold Myerson; who stated, ‘”those who, just as in the 1930s, tried to learn the lesson that market capitalism didn’t work and needed to be replaced with an entirely different model.” He believes in the past capitalism did not work well as it should; therefore, suggesting the Government should take different approaches on capitalism to aim for positive result.  That could be a tough decision on Politian enough because the Government controls regulations and foreign policies.  Since September 11, 2001 incident with terrorism, many developed countries are protested and debated against globalization.  However, the debated issues are much stronger due to the essential of how economies are structured and especially individual governments deal with each others.  In the recent years, it has been increasing interaction of Governmental agencies in globalization because of their federal economic systems.  Moreover, the developed countries should make the market leaning forward to world economies, or maybe at least some essential aspect.  Mr. Alan Greenspan of Bank for International Settlements believes that developing countries must strive to have more globalization.

     The globalization could be beneficial depends on how individual national government dealing with international relations with other countries.  It gives opportunities for developing countries to improve benefit consumers and proficient producers, but it requires more challenges.  Furthermore, providing free trade between nations and link countries to peace likes United Nations.  In modern economies, marketing and trading play major key in national wealth.  Therefore, globalization is the opening for countries to access large markets, and beneficial capital flows.  Perhaps increasing the imports and exports of goods and services would be the factor of its benefits.   In other words, more investment would boost better living standards within the developing country, meaning it is force for long term economy stabilities.  For certain countries specialize at different products, for example, Japan is known well in the electronic and automobile productions, China is known for cheap labor in goods, so India in customer services.  Per Mr. Palmer’s research shows free trade is the greatest path to eliminated child labor.  “Around the world approximately 250 million children labor,” this number has been dropped dramatically when globalization is implemented.  It also improve their education opportunities because with better living condition would be an open door.

     Although globalization brings many benefits to the world, but always there are people fears of international financial market crises; besides, the benefits for invested countries would be unbalanced.  In this case, the Government would be the central regulation for limited trades leading to imports issue to become dangerous.  This is possible to become more broken economic systems around the world.   Last year, the world economies were suddenly shifted to unexpected direction, many countries poverty had risen up to high percentages.  The national average income had dropped across the developing countries include:  17% in Indonesia, 40% in China, 32% in South Africa, 40% in China, 40% in India, 24% in Argentina, and etc.  In the article, “Why Globalization Is in Trouble,” by Mr. Branko Milanovic, he emphasizes that more developed countries fear with globalization due to job loss because of outsourcing to developing countries.  Today with modern technologies have shifted the jobs outsourcing to low-wage countries, which give the countries like United States and Canada financial crisis.  Maybe the benefit of job outsourcing would help the price on production cheaper for consumers; however, imagine million jobs are sent to over-sea that means million people lose their jobs.   Another fear is increasing immigration, which possible lead to culture intensity issue.  The immigration has been the most important agenda in the United States for the past decade; especially during the recent presidential election.  Whether the there are methods to control immigration problem in this country.  Both job loss and immigration problems are brought by globalization, which is harmful to developed countries.

     In order to minimize the negative impact on globalization, every country should attempt to stop terrorism.   Mr. Alan Greenspan’s research shows terrorism is number one concern in globalization on economy downturns. “Terrorism poses a challenge to the remarkable record of globalization.  A global society reflects an ever more open economic environment…” There are several ways that the Government and Central Bank can do to minimize the negative impact on globalization such as changing policies on foreign affairs, trading, or lowering interest rates.  

       In brief, globalization is the central key to world economies; however, not every single participated country would be beneficial.  Some countries might suffer serious crisis due to terrorism, job loss, market downturns, and even national debts.  In the opposite side, new age of globalization has brought to high standard and most of developing countries are up to the speed.  Improving the marketing trades and living condition standard are most influences.

REFERENCES

• Faiola, Anthony. “A Global Retreat As Economies Dry Up.”  Washington Post, March 5, 2009.
• Gjelten, Tom. “Economic Crisis Poses Threat to Global Stability.” National Public Radio, February 18, 2009.
• Greenspan, Alan. “Globalization.” Bank for International Settlements.  October 24, 2001.  Retrieved on July 5, 2009. URL: http://www.bis.org/
• Milanovic, Branko. “Developing Countries Worse Off Than Once Thought.” Yale Global Online. Carnegie Endowment. February 11, 2008.  URL: http://www.carnegieendowment.org
• Milanovic, Branko.”Why Globalization Is in Trouble.” Yale Global Online. Carnegie Endowment. August 29, 2006. URL: http://www.carnegieendowment.org
• Palmer, Tom G. “Globalization is Great.”  Cato Institute. October 2002. Retrieved on July 7, 2009.
• Beneficial trend: The globalization of well-being”. Growth Strategies. FindArticles.com. 02 Aug, 2009. http://findarticles.com/p/articles/mi_qa3908/is_200301/ai_n9208283/