• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Will Globalization Survive War?

Extracts from this document...

Introduction

Title: Will Globalization Survive War? Author: Robert J. Samuelson Source: The Washington Post Summary The article "Will Globalization Survive War?" touched upon several different ideas and subjects surrounding globalization. Robert J. Samuelson took a very interesting approach in explaining present day globalization and compared it to major historical issues of the past. The war with Iraq could be a bad or good thing for globalization. In the past the world's economies have prospered following a war. This is especially seen after World War II. The main reason for the prosperity following War World II was many countries economies were self contained and trade was concentrated in raw materials and some industrial products. Globalization has changed the way in which our world operates. For example in the 1960's world exports were only equal to 12.5% of the world's gross domestic product. But, in 2000 that figure had doubled and exports were equal to 23% of the gross domestic product. From 1995 to 2002 the US accounted for 64% of the world's economic growth. This statistic displays one of the major problems with globalization; it's over dependence on the US economy. While the US continues to grow other European and Asian countries remained stagnant. The article goes on to say that historically speaking war has been followed by globalization gains but, a globalization slowdown may also be a possibility. ...read more.

Middle

Wars produce surprises, for good and ill. No one expected that World War I would doom the existing global economic system or, more optimistically, that World War II would herald history's greatest prosperity. The question now is whether a war in Iraq, even though much smaller, might also trigger momentous side effects. Only a few years ago globalization seemed irrepressible. We were all advancing (it was said) on flood tides of international trade and investment. After World War II, countries were mainly self-contained economies, with trade concentrated in raw materials (food, fuels, minerals) and some advanced industrial products. This world no longer exists. In 2000, exports equaled 23% of global economic output (gross domestic product), says the World Bank. That was almost double the 1960 level (12.5% of GDP). Cross-border investing is routine. The International Monetary Fund reports that foreign ownership of stocks and bonds totaled $12.5 trillion in 2001: Americans held $2.2 trillion in foreign securities; Japanese, $1.3 trillion, and Germans, $792 billion. Globalization already faces problems unrelated to Iraq: Overdependence on the U.S. economy (it accounted for 64% of world economic growth from 1995 to 2002, says Stephen Roach of Morgan Stanley); stagnation in Europe and Japan; over-indebted developing countries (Argentina, Brazil); the threat in deflation (declining prices), caused by cheap goods from China and Asia; hostility from some labor and environmental groups. ...read more.

Conclusion

German companies already report a backlash from U.S. customers, said the reports. Some American investors balked at buying French bonds. Businesses can usually strike bargains based on financial calculations. War and terrorism create new uncertainties that confound ordinary calculations and may deter global commitments. It might make sense to invest in a South Korean company. But how risky is it to bet on a company next door to a nuclear megalomaniac? Commerce flourishes when there is economic confidence and political stability. The reconstruction of the world economy after World War II occurred because the United States provided both. It created a military umbrella for Europe and Japan. It led the writing of rules for global trade. American economic vitality aided the rest of the world. The gospel of globalization presumed that the end of the Cold War meant more of these good things. American ideas (democracy, free markets) would spread and foster political consensus. Growing global trade and investment would build economic confidence. It isn't so simple. Contradictions abound. American leadership seems strong -- and countries everywhere assail it. Economic pressures draw nations together -- and cultural and political differences pull them apart. Some technologies favor global commerce -- and others abet terrorism. The logic for cohesion resists the power of fragmentation. This looming war may help determine which prevails. Hyperlink http://online.wsj.com/article/0,,SB1045608729895266903,00.html ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level International History, 1945-1991 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level International History, 1945-1991 essays

  1. This graduation paper is about U.S. - Soviet relations in Cold War period. Our ...

    With Stalin having already granted diplomatic recognition to the Lublin regime, Roosevelt could only hope that the Soviets would accept enough modification of the status quo to provide the appearance of representative democracy.

  2. How And Why Did Britain Survive The War From 1940-1943?

    That was the way it was because Britain was in desperate trouble with its army in disarray and its commercial shipping and navy taking heavy losses from the German U-boats. Although Britain was preparing for a massive German invasion Hitler did not think there was a reason to attack Britain

  1. The Prelude to the 1975 War and the Cairo Agreement.

    If the guns were converged, as stated by the Israeli forces, there should have been only one main point of impact. The pattern of impacts is inconsistent with a normal overshooting of the declared target (the mortar site) by a few rounds, as suggested by the Israeli forces.

  2. American History.

    sales, which really was the greatest source of profit], moved west, or gave up on farming altogether. Old Northwest/Western Territories - this region took over the commercial? crop farming from NE. Large, flat farms were formed, and the mechanization of agriculture helped enormously.

  1. Alternatives to fossil fuels

    the prevention of the proliferation of nuclear weapons (Advertising in Cooperation in the Energy Futures of China and the United States, 2000). Focus on these four challenges, there are several available solutions to deal with. Firstly, the governments may use mass media as vehicles for propaganda to support the peaceful

  2. Why And How Did Britain Survive The War From 1940-1943

    Germany took no time to defeat the Low Countries. It attacked the weaker central part of the Maginot Line. The Germans easily defeated the First World War style French troops and drove on to capture Paris. Incredibly, although the French had a bigger army than Germany, they were defeated in just six weeks.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work