Globalization And U.s. Government - 2114 Words

Globalization and U.S. Government Globalization is a new term to describe social, cultural, and economic process. It is a process that describes the interaction between different social groups. Tomas L. Freidman (2005), an American journalist, columnist and author, he wrote a book called â€Å"The world is Flat†. In the article, he notices that there are three period of globalization. He named the first period of globalization the globalization 1 which lasted from 1942. In the globalization 1, only countries involved in globalization. The globalization 2 lasted from 1800 to 2000. In this period, a lot of companies from different countries got involved. The last period is from 2000 to now. In the last period, individuals also involved in†¦show more content†¦Counties could get benefit from globalization of economy through international trading. However, they also could suffer negative impacts of globalization. In modern society, the trades between countries are usual and frequent. According to Robert, through international trading, the US citizens could buy foreign products in lower prices. However, international trading is harmful for some domestic companies (2013). For instance, if US and China all produce cars. Once both country open its market to the world. China will lose its original competitive advantages because the U.S. auto companies made better cars. The cause of this result is the diversity of competitive advantages. For China, their competitive advantage is low labor costs but low technology. For the United States, they has high technology but high labor expenses. Also if some of countries join some custom unions. Those country who was not in that unions will definitely has disadvantage on international trading. Towards these types of problems, the US government made a lot of policies to protect US economy. For example, tariff is an import tax which used to protect domestic companies. The tariff raises price of import goods. It is only benefit to U.S. producers. On t he other hand, world wild business competition enhance hardness for infant companies. The US government also gift