What Is Globalization and What Are Its Effects

Globalization, for good or ill, is here to stay. Globalization is an attempt to abolish barriers, especially in trade. In fact, it has been around longer than you might think. Definition Globalization is an elimination of barriers to trade, communication, and cultural exchange. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations. While most Americans only began paying attention to globalization with the North American Free Trade Agreement (NAFTA) debates in 1993. In reality, the U.S. has been a leader in globalization since before World War II. End of American Isolationism With the exception of a spate of quasi-imperialism between 1898 and 1904 and its involvement in World War I in 1917 and 1918, the United States was largely isolationist until World War II changed American attitudes forever. President Franklin D. Roosevelt had been an internationalist, not an isolationist, and he saw that a global organization similar to the failed League of Nations might prevent another world war. At the Yalta Conference in 1945, the wars Big Three allied leaders--FDR, Winston Churchill for Great Britain, and Josef Stalin for the Soviet Union--agreed to create the United Nations after the war. The United Nations has grown from 51 member nations in 1945 to 193 today. Headquartered in New York, the U.N. focuses (among other things) on international law, dispute resolution, disaster relief, human rights, and the recognition of new nations. Post-Soviet World During the Cold War (1946-1991), the United States and the Soviet Union essentially divided the world into a bi-polar system, with allies either revolving around the U.S. or the U.S.S.R. The United States practiced quasi-globalization with nations in its sphere of influence, promoting trade and cultural exchanges, and offering foreign aid. All of that helped keep nations in the U.S. sphere, and they offered very clear alternatives to the Communist system. Free Trade Agreements The United States encouraged free trade among its allies throughout the Cold War. After the collapse of the Soviet Union in 1991, the U.S. continued to promote free trade. Free trade simply refers to a lack of trade barriers between participating nations. Trade barriers typically mean tariffs, either to protect domestic manufacturers or to raise revenue. The United States has used both. In the 1790s it enacted revenue raising tariffs to help pay off its Revolutionary War debts, and it used protective tariffs to prevent cheap international products from flooding American markets and prohibiting the growth of American manufacturers. Revenue-raising tariffs became less necessary after the 16th Amendment authorized an income tax. However, the United States continued to pursue protective tariffs. The Devastating Smoot-Hawley Tariff In 1930, in an attempt to protect U.S. manufacturers trying to survive the Great Depression, Congress passed the notorious Smoot-Hawley Tariff. The tariff was so inhibiting that more than 60 others nations countered with tariff obstacles to U.S. goods. Rather than spur domestic production, Smoot-Hawley probably deepened the Depression by hobbling free trade. As such, the restrictive tariff and counter-tariffs played their own role in bringing about World War II. Reciprocal Trade Agreements Act The days of the steep protective tariff effectively died under FDR. In 1934, Congress approved the Reciprocal Trade Agreements Act (RTAA) which allowed the president to negotiate bilateral trade agreements with other nations. The U.S. was prepared to liberalize trade agreements, and it encouraged other nations to do likewise. They were hesitant to do so, however, without a dedicated bilateral partner. Thus, the RTAA gave birth to an era of bilateral trade treaties. The U.S. currently has bilateral free trade agreements with 17 nations and is exploring agreements with three more. General Agreement on Tariffs and Trade Globalized free trade took another step forward with the Bretton Woods (New Hampshire) conference of World War II allies in 1944. The conference produced the General Agreement on Tariffs and Trade (GATT). The GATT preamble describes its purpose as the substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis. Clearly, along with the creation of the U.N., allies believed that free trade was another step in preventing more world wars. The Breton Woods conference also led to the creation of the International Monetary Fund  (IMF). The IMF was intended to help nations that might have balance of payments trouble, such as Germany had paying reparations after World War I. Its inability to pay was another factor that led to World War II. World Trade Organization GATT itself led to several rounds of multilateral trade talks. The Uruguay Round ended in 1993 with 117 nations agreeing to create the World Trade Organization (WTO). The WTO seeks discusses ways to end trade restrictions, settle trade disputes, and enforce trade laws. Communication and Cultural Exchanges The United States has long sought globalization through communication. It established the Voice of America (VOA) radio network during the Cold War (again as an anti-Communist measure), but it continues in operation today. The U.S. State Department also sponsors a multitude of cultural exchange programs, and the Obama administration recently unveiled its International Strategy for Cyberspace, which is intended to keep the global Internet free, open, and interconnected. Certainly, problems exist within the realm of globalization. Many American opponents of the idea say it has destroyed many American jobs by making it easier for companies to make products elsewhere, then ship them into the United States. Nevertheless, the United States has built much of its foreign policy around the idea of globalization. Whats more, it has done so for nearly 80 years.

The Strategic Defence Initiative Within The Cold War Essay

The Cold War was an ideological war primarily between the United States and the Soviet Union (1945-1991). There were several major flashpoints within the war, such as the concept of Mutually Assured Destruction (M.A.D), the Strategic Defence Initiative (S.D.I), the Cuban Missile Crisis, the Vietnam War, the Korean War, the Berlin Blockade and the defiance of the USSR. This essay will discuss the significance the Strategic Defence Initiative within the Cold War. Contrary to the mainstream idea that the S.D.I played a primary role in ending the cold war, the S.D.I had implications in ending the war by influencing Soviet leadership however it unnecessarily complicated and increased tensions in the war. To begin with, the Cold War occurred because of the increased tensions and the alternate ideologies. Secondly, the Strategic Defence Initiative had opposing goals and purposes, therefore ensuring its superiority across political and defensive areas.Finally, the S.D.I only increased existi ng tensions. The Cold War was an ideological war between Communist and Capitalist ideologies. Specifically, the two super powers, the Soviet Union and the United States. This ideological war began shortly after the conclusion of the Cold War, with the Cambridge University Press defining the Cold War as a state of extreme unfriendliness... between countries, especially ... with opposing ideological systems, ... expressing itself ... through political pressure and threats. (Cambridge UniversityShow MoreRelatedThe Beginning of the End for the Cold War1228 Words   |  5 Pagespolicies (Regan Doctrine) which concluded the Cold War contest with victory for the west. 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Economic Downturns

Questions: 1: Classical economists and Keynesian economists both have different views on the causes of economic downturns, as well as what to do about restoring the economy to long-run equilibrium. Explain in 4-5 sentences how and why these two views differ. In an economic downturn, what does a classical economist believe will happen? What about a Keynesian economist? Using an LRAS-SRAS-AD diagram, illustrate either the Keynesian or the Classical view of how the economy should return to long-run equilibrium after an economic downturn (recessionary gap). For full credit, be sure to explain each step in your answer. 2: The below information gives details on the U.S. balance of payments for 2013 ($ billion). Exports of goods 1,592 Imports of goods 2,294 Exports of services 682 Imports of services 456 Factor income receipts 773 Factor income payments 574 Unilateral transfers (net) -123 Private asset sales and 373 Official asset sales and purchases -2 purchases (net) (net) 1. Calculate the current account and financial account balance. For full credit, show all steps in your answer.2. Adding the current account to the financial account balance should give you a zero balance of payments. Calculate the balance of payments for this example. Explain in 1-2 sentences why the balance of payments in this example is not equal to zero.3.What effect did the collapse of the U.S. housing bubble and the ensuing recession have on international capital flows into the United States increase or decrease, and why? (Hint: U.S. interest rates plummeted during the recession.) Explain in 2-3 sentences. 3: Illustrate the effects of the following events on the value of the British pound relative to the value of the U.S. dollar. For full credit, label the axes and explain how you arrived at your answer. Britain's income decreases Britain's price level increases relative to the U.S. price level Britain's interest rates decline relative to U.S. interest rates 4: Use the relationship between the nominal exchange rate and the real exchange rate that was discussed in class to determine the answers to the following questions. For full credit, show how you arrived at your answer. Year Nominal Exchange Price level (U.S.) Price level (foreign) Rate (U.S.) 2011 2.335 105.2 108.3 2012 2.590 105.9 108.5 2013 3.015 106.0 109.0 2014 3.020 107.3 110.8 2015 3.446 107.3 112.6 Calculate the real exchange rate in the U.S. in 2012. Round your answer to three decimal places. Calculate the percentage change in the nominal exchange rate in the U.S. between 2013 and 2014. Round your answer to three decimal places. Calculate the percentage change in the real exchange rate in the U.S. between 2013 and 2014. Round your answer to three decimal places. Did imports from the U.S. get cheaper or more expensive between 2013 and 2014? Explain in a sentence Answers: 1. In accordance with the new Keynesian theory, economic downturns are due to lack of coordination. Such problems can arise due to the setting of prices and wages as these can anticipate the actions of other price and wage setters. The union leaders negotiate wages that are further concerened about concessions that other unions can win. According to Keynesian theory, the economy comprises of 2 firms and that if there is a decline in the money supply then each firm should decide whether or not it should cut the price. Each and every firm needs to maxize their profits, and that the profit relies not only on the pricing decision but also on other decisions made by another firm. And when no one firm makes a reduction in the price, the amount of the real money is quite below par due to which recessions occur. According to the classical economists, the government involvement and spending can result in a slow economic growth by decreasing the private sector and increasing the public sector as classical economists believe that the business investments and consumer spending signifies the most essential parts of the countrys economic growth. 2. In the Keynesian theory, the four components are consumption, investment, net exports and Government. The equlibrium level is attained when the current production is equal to the planned aggregate expenditures. At this particular point, there is never an incentive for the firms to make any alteration in the production plans. 2. Current Account balance = Exports imports + net income abroad + net current transfers CAB = (1592+682) (2294+456) + (773-574) + (-123) CAB = (-400) Financial Account balance = Differences between the sale of private assets to foreigners and purchases of private assets held abroad and differences between the sale of official assets to foreigners and purchases of official assets held abroad FAB = 373 -2 = 371 Adding of CAB to FAB does not give the value of 0 This is because there is no capital account. BOP = -400 +371 BOP = (-29) The bursting of housing bubble and ensung recession will result in the change in the returns expected to housing assets and will in turn result in the capital reallocation within the United States. When there is a collapse in the housing bubble, consumers feel less wealthy and hence reduce their spending and that the investors would get lower capital gains from the investments and hence, consider other assets. This shift can be to a one specific country or another country. When there is a flow in investment to offshort assets then the capital movements would definitely generate a change in the CAB, exports and imports and hence the real exchange rates as well. 3. When the British income increases, the demand schedule for US dollars will make it shift towards outwards which reflects the increase in income of British pounds and hence there would be an increase in demand for US goods. More than this, the supply schedule for US dollars for sale will not change. The equilibrium rate of exchange of the US dollars would rise. 1. Higher prices in Britain will result in making the imports less expensive. The Britain citizens will likely increase their spending on imports from US, shifting the demand for US dollars to the right from D0 to D1. At the same moment of time, the US would find out the Britishs goods to be more and hence it will make a reduction in their export demand from the British. The supply of US dollars will also shift to the left i.e. from S0 to S1. The result is the increase in the price of US dollars.2. A lower interest rates will definitely lessen the return rate on British GBP below the return rate on dollars which leads the investors to make a shift in the investments in US assets and hence a decrease in the US dollars to GBP exchange rate. This is shown below in terms of an increase in the GBP interest rate and vice versa. 4.1. Real Exchange rate in 2012 = Nominal exchange rate x domestic price / Foreign price Real exchange rate in 2012 = 2.590 x 105.9/108.5 Real exchange rate in 2012 = 2.532. Percentage change in the nominal exchange rate = 3.020-3.015/3.015 x 100 Percentage change = 0.166%3. Real exchange rate in 2013 = 3.015x106/109 Real exchange rate = 2.93 Real exchange rate in 2014 = 3.020x107.3/110.8 Real exchange rate = 2.92 Percentage change = decrease of 0.34%4. Real exchange rate decreases results in the exports to be cheaper as there will be a decrease in the leakages from the circular flow of income.

Lesson Before Dying Essays - A Lesson Before Dying, Thomas Jefferson

Lesson Before Dying In "A Lesson Before Dying", Mr. Grant Wiggins' life crises were the center of the story. Although he was supposed to make Jefferson into a man, he himself became more of one consequently. Not to say that Jefferson was not in any way transformed from the "hog" he was into an actual man, but I believe this story was really written about Mr. Wiggins. Mr. Wiggins improved as a person greatly in this book, and that helped his relationships with other people for the most part. At the start of the book, he more or less hated Jefferson, but after a while he became his friend and probably the only person Jefferson felt he could trust. The turning point in their relationship was the one visit in which Jefferson told Mr. Wiggins that he wanted a gallon of ice cream, and that he never had enough ice cream in his whole life. At that point Jefferson confided something in Mr. Wiggins, something that I didn't see Jefferson doing often at all in this book. The first instance in which Jefferson breaks his somber barrier and shows emotions is when "I saw a slight smile come to his face, and it was not a bitter smile. Not bitter at all"(157). At that point, he became a man, not a hog. As far as the story tells, he never showed any sort of emotion before the shooting or after up until that point. A hog cannot show emotions, but a man can. There is the epiphany of the story, where Mr. Wiggins realizes that the purpose of life is to help make the world a better place, and at that time he no longer minds visiting Jefferson and begins becoming his friend. Mr. Wiggins' relationship with his Aunt declined in this story, although it was never very strong. His Aunt treated him as if he should be a hog and always obey; yet, she wanted him to make a hog into a man. His Aunt was not a very nice person, she would only show kindness towards a person who shared many of her views, and therefore was probably a very hard person to get along with. The way Mr. Wiggins regarded his relationships most likely would have been different were he white. Mr. Wiggins feels, and rightly so, that several white men try to mock or make a fool of him throughout the story. This was a time of racial discrimination with much bigotry, so if the story took place in the present, it would be much different. In fact, there probably would have not even been this story because in the modern day, an honest and just jury would have found him innocent due to the lack of evidence. It wasn't really clear what sort of situation Mr. Wiggins was in regarding money, but he could not have been too well off because he needed to borrow money to purchase a radio for Jefferson, and he commented about the Rainbow Cafe: "When I was broke, I could always get a meal and pay later, and the same went for the bar."(168) I suppose he had enough money to get by, but not much extra. As the book progresses he probably had less money to work with due to the money he was spending to buy the radio, comic books, and other items for Jefferson. Mr. Wiggins seemed to be well respected by the community, and he felt superior to other African Americans because he was far more educated than they were. That makes Mr. Wiggins guilty of not practicing what he preaches, although Jefferson probably made it clearer to him that the less intelligent are still humans with feelings. At the start of the book, Mr. Wiggins did not understand this. He went to visit Jefferson because Miss Emma and his Aunt more or less forced him to do it. He really had no motivation except that his Aunt would shun him if he did not comply. The whole process of Mr. Wiggins' development and the plot of this story both spawn from the crimes of two characters with no other relevance to the story. After the police found Jefferson at the liquor store with the dead bodies all around, he was of course taken to trial and the times being what they were, he was convicted with very little doubt that he would be found innocent. Miss Emma, his godmother was afraid that he would die a hog and