Globalization's Impact on States

No individual country is immune from global threat of nuclear attack, unfair trading method or terrorist occurrence. Which is why globalization is very important through interdependency with other nations to preserved a healthy relationship with all our allies throughout the world to guard against nuclear proliferation and terrorism from despotic nation such as North Korea, Iran, Syria and Russia just to mention a few and to maintained a degree of fairness in trade such as the North Atlantic free trade agreement initiated under president Obama administration that ensured fair trading practice with participation nation.

President Donald Trump recent announcement to end NAFTA and to enter a unilateral trade war with china for his own political interest is going to have a ripple effect in international trade. Which only served to Isolate America in the global international trade arena while most of our allies are entering trade deals with china.   

The Logic of Economic Globalization.

Globalization in essence was design to connect the world through a “combination of deregulated foreign trade, reductions in trade tariffs and the removal of export fees. Globalization seeks to utilize foreign markets effectively for trade as well as provide new development opportunities for production employment in foreign countries” (Hammond, 2017).

In all its outward appearance globalization seems by many to                                                                                                                                                                                                                                                                be the  elixir of the world economy for the twenty first century, but in reality not all nations are benefitting   equally  from globalization. For example, globalization tend to be more beneficial to developing nations such as the G-12 nations because the   world banks and other lending institutions such as the international monitory fund extend  ample resource to these nations which help to improve their economy, while on the other hand tend to have a negative impact on third world countries because these same lending institution such as the world banks and  IMF refused to lend funds to these third world nations for fearing that they do not repay their loan with interest on a timely basis.

For third world nations the benefit of globalization come in the form of the interconnectedness of countries due to modern technologies which allowed for citizens from these poorer countries to migrate to other developing nations in minutes to seek better employment and to reap the benefit of globalization.

Reference:

Hammond, K. (2017, September 26). Globalization's Effects on Third-World Countries. Retrieved June 26, 2018, from https://bizfluent.com/info-8543200-globalizations-effects-thirdworld-countries.html

JUN 18 The Political Economy of Global Financial Crises

This lecture will focus more on the nature of financial crises. Since the 1970s, these kinds of crises have become more common, and are much more global in their scope. The largest, so far, has been the crisis of 2008. The increasing frequency of these crises is, of course, related to the globalization of finance.
I choose to write about this quote because It is true that the 2008 financial crisis was so far, the largest and is mainly related to financial globalization. Globalization is beneficial among countries because it creates jobs and allow countries to import and export goods and services to boost or increase their economy and so on. on the other hand globalization can be the opposite. for example the 2008 financial crisis due to globalization affected many countries it did not just affect America but instead it affected countries on a global level. This type of financial crisis can be repeated again if President Trump really start a trade war with china. Again this war will be a very large crises related to globalization of finance. China, America and other large countries will face economic and financial crises as a result it will be related to globalization. I say this because over 10 American companies including caterpillar and apple have very close relations with china and they are technically American companies, They will face huge loses if trump put the trade war in effect.

The Evolution of the International Monetary and Financial Systems

    "As much as trade is important in understanding globalization, the flows of money and capital are just as important. Before you can have trade between nations, you have to exchange rates for currencies between them. Since we use money, you have to be able to figure out what the value of your money is in another country, or the value in that country's currency".
I agree strongly with this quote and find it very interesting. I few years ago I created a small business or trade of my own to support myself and pay for my education. The business involved purchasing goods here in the US and selling them in the Caribbean.Before getting involve and establishing the business I had to first decide the currency value between the US dollar and EC dollar. I saw it profitable and possible  to establish the business because of three important  reasons. First the exchange rate of $1 US equal $2.68 EC,second the huge demand for my goods in Caribbean and thirdly the ability  to convert  or exchange one currency to another or the ability of having a tool or mechanism to allow trade or business between the united states and the Caribbean. In conclusion I say this to show that I understand or have some knowledge or idea  of how trade can be operated between countries or on a global level. 

Regional Trade Agreements

"However, behind these issues was the far greater problem of agriculture, where, again developing countries were intent to register their displeasure as the agricultural subsidy practices of the United States and the European Union. For example, four West African producers of cotton demanded a sectoral initiative to eliminate cotton subsidies in countries such as the US, the EU, and China, but they received a response suggesting that African countries should diversify their production, a message they interpreted as telling them to stop growing cotton. This response inflamed the Africans, and added to the antipathy that threatened to spiral out of control at the conference"
          I found this part of the lecture interesting. I had no idea that west African countries produced cotton. The four main west Africans countries that produce ccotton on a large scale are Benin, Burkina Faso,Chad and Mali.To further understand more about the  issues west African countries  face as a result of larger countries subsidy practices in cotton industry I decided to research more. while researching I came across a website www.theguardian.com, there is an article on this site that discuss on this subject matter. As per article "The Fairtrade Foundation calculates that the US, the European Union, China and India have in that time paid their cotton farmers $47bn (£29bn) in subsidies in total - flooding the international market and pushing down the global price for competitors, especially in west Africa". This makes it difficult for the west Africans farmers and the countries at large.
          The Farmers  loose lots of income as a result of this have a hard time caring for their families  and are unable to provide employment opportunities to others. These  four large cotton producing countries are unable to provide work for their citizens,  and to develop the infrastructure such as building  roads, schools  and economy of the country. To help these Countries, and decrease or stop the subsidy practices, The UK government is committed to working towards making principles of fair trade to be integrated and reflected in the global trading system.
 In my opinion it is a great thing for any country  to be independent and not depend on other countries for basic necessities even if agriculture is the backbone or a percentage of their economy. Producing goods and being able to participate in trade on a global level will be good for These countries because it will help decrease the poverty rate and allow the countries to have some form of independence and stability.

The Evolution of the Global Trade Regime

 Agriculture is another important trade issue. Many countries do not want to accept US food imports because of the food processing standards in the US.
This quote from the lecture stood out to me it made me become more interested to find out why many countries do not accept US food imports and also which foods. During my research I found a few foods and the reasons why certain countries  like Russia and other European union countries, do no accept them from The US.
I was not aware that certain chemicals that are placed in the foods we eat here in America. For example farm raised salmon are fed synthetic astaxanthin made from petrochemicals, which has not been approved for human consumption and Pigs, Cattles and Turkey are injected with a beta agonist drug Ractopaine.
 Astaxanthin is a carotenoid. It is a blood red pigment that is naturally found in rainwater microalgae and yeast fungus called Xanthophyllomyces. freshwater species that consume microalgae reflect the red-orange pigment in their appearance. examples of these species are lobster, red trout, shrimp and salmon. Farm raised salmon does not contain this chemical naturally and so the fish is fed artificially to have the pigment reflected in its appearance. this synthetic Astaxanthin can cause side effects to humans such as crystal deposits on retina and lead to eye injury, some cancers and neurological changes.
Ractopaine is a drug used to treat asthma in humans. it was discovered that this drug can make a mouse muscular and is now being injected in meat we consume such as turkey, pork and beef. the reason for this is because it make the meet less fatty and more meatier. these chemical has serious side effects in humans when consumed in this manner. it is known to cause serious cardiovascular problems which is a leading cause of death in the American population.
 after reading and researching more on this topic, I will be more conscious of what I eat and as a result I will support local farmers and the farmers market in my community

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Domestic Sources of Foreign Economic Policie

         Countries can change as well, China is a labor intensive country that is becoming capital intensive, and that probably more than anything else explains Trump's posture towards China, reflecting the fact that China is becoming more of a direct competitor with the US.
        China is known as the second largest economy by nominal GDP and the world's fastest growing economy. As a result of this president Trump see china as a threat. He threatens to add tariffs on  another $200 billion  of china's goods and to start a trade war with china.
      President trump threatens to start a trade war with china and that trade war can backlash and affect the U.S stock market. U.S companies that sell or get sales due to relations with china can face higher import taxes ranging from 15 to 20 percent.  According to USA today "Wall Street fears business will slow for these firms, as their products will be more expensive for Chinese shoppers and manufacturers. That's bearish for stocks, as higher prices can lead to fewer sales and smaller profits and ultimately lower share prices." Some companies that will be greatly affected are Apple, Boeing, Caterpillar, Deere, Tesla, Borg Warner and Qualcomm.
In conclusion because these American brand companies will be greatly affected by Donald Trumps threat to start a trade war with china, it is hard and almost impossible for him to put such a threat in effect. 

Cooperation and Conflict in GPE

 " Game theory provides hypothetical examples to demonstrate situations that make cooperation difficult, or "games" that describes the choices available to actors, their outcomes, and the information they have when they make choices". 
     I choose to talk about this specifically because it stand out to me. Game theory demonstrates the game to the players or people involved, it is not bias but instead fair and honest. it allows players to see and understand the game but ultimately they are to make their own choices to be a part of the game or not or it also allow them the choice to play fair or not. they know the game and can now choose how to play.

Theoretical Traditions in Global Political Economy

I want to reflect on the part of the reading that talk about one way globalization works. "globalization  has a connections between politics and economics, otherwise known as "political economy".
According to Oxford politics trove "Political economy deals with the study of production and trade and their relations with law, custom and government; and with the distribution of national income and wealth. " Globalization has a huge connection between politics and economics I agree with this statement from the reading because it allows for free trade and employments and brings money to countries. and from a political standpoint it brings government from various countries together to discuss about the trade and rules and laws. I my opinion the political  economy brings about a certain level of peace in the world and allow countries to work together and develop and learn from each other.

Globalization

"Globalization creates "interdependence" meaning the economies of the world are linked together, along with corporations, and organizations that operate across national boundaries, so that what happens in one economy has consequences for the others"
I believe  that globalization  do create interdependence among organizations and other countries as a whole. A country may be dependent on another for different things and another country may depend on that same country for something also. Its like no country is an island, all nations need each other and its really one economic or finance system. its a good thing that globalization creates interdependence because it creates employments, coherence or mutual understanding between different countries and a sense of trust. in my opinion an example is America and European countries depend on Burkina Faso and other African countries for gold and diamonds and Burkina Faso depend on other African countries for resources also and other countries depend on America stock market or resources also. we are one people one nation we cannot co exist without each other and when one economy fail other countries are also negatively impacted.