The Effect of Globalization

Modern trends of globalization and communication create new demands and new challenges for businesses. Fast development of science and technologies affects both society and economy. It constantly modifies the methods and schemes of management and marketing. Domestic policy bodies are institutions of immense economic, social, and political impact. This power not only provides numerous benefits for the country, but also is responsible for its domestic activity, helping countries face different tasks and fulfill them. The ability of a country to deal with various obstacles quickly and painlessly defines its position in the market to great extent.

Globalization processes in world economy represent the natural result of internationalization of production and capital. Globalization to a considerable degree is a quantitative process of scales increase and expansion of frameworks of micro economic relations. Pieterse claims:

During the past two decades the dominant approach in policy has been neoliberal globalization, not in the sense that it is all there is to globalization, but in the sense that it became a global regime. Most protest against globalization concerns neoliberal globalization, and arguably this is the actual problem, rather than globalization perse.

Contemporary globalization can be described as a package deal that includes informatization (applications of information technology), flexibilization (destandardization in the organization of production and labor), and various changes such as regionalization and the reconfiguration of states. Since the 1980s, the growing impact of neoliberal policies adds to the globalization package, deregulation (liberalization, privatization), marketization (unleashing market forces), financialization and securitization (conversion of assets into tradable financial instruments), and the ideology of lean government.

During last decades some positive high-quality changes have occurred in the modern world in the area of integration processes. These processes received the name “globalization” – global nationalization of economic, political, spiritual, and other relations of people.

The term “globalization” is not always considered to be successful. Quite often meaning the domination of the USA in the world, globalization is often considered a process of “Americanization”. Therefore, a number of researchers prefer to use the term “internationalization”. This is because they believe that interdependence of countries, economies, and cultures increases instead of imposing any standard on the world.

Globalization is a process of qualitative change of internationalization, formation of rather contradictory but complete world where separate societies, countries, and regions acquire features of the uniform planetary whole. The development of this world is influenced by a great number of global problems.

Globalization process defines many aspects of development of the modern world. It is possible to speak of specific transformations of the international system today. There was a shift from a closed national state policy to a more complicated form of global government. At the same time, the present state of mankind development is characterized by opening possibilities and significant future threats due to globalization.

Certainly, the USA has possibilities to render the greatest influence on globalization. On the other hand, it cannot extend the model to all countries because there will be no resources in the world. It means that it is beneficial for the USA to direct form and content of globalization processes according to the national interests. This means it is beneficial for the US to use it for maintenance and strengthening of national competitiveness. This is the reason why globalization becomes one of the mainstreams of a competitive struggle.

Listed below are the most general features of the globalization process:

  1. Globalization, quite obviously, is the most important process of the present times. Without globalization it is impossible to predict, define, or fulfill foreign policy of any state.
  2. Globalization is dynamic developing process with certain acceleration. Therefore, it cannot be considered only as a static one.
  3. In terms of production globalization essentially depends on the changing nature of productive forces. Nowadays, its character is defined by scientific technical innovations, generally in the field of communication means and information. It encourages globalization of financial streams and ensures flexibly of international division of labor.
  4. Globalization is not a finite phenomenon, but a long process.
  5. Globalization objectively reduces the importance of national governments, but the stability of national sovereignties is very strong. Therefore, it is impossible to predict any certain washout of national sovereignties in the nearest future.
  6. The United States of America is the leader of globalization process, but it does not imply the possibility of its eternal domination in the world economy or its one-polarity.

In Chinese political and economic science there exists a widely spread point of view that economic globalization is an objective process of a gradual merge of economies of separate countries in the world, and this tendency is irreversible. Political scientists and economists of China put strong emphasis on several components of globalization such as development of a science, equipment, information technologies, direct stimulation of international trade, production, investments, and unification of the world economy. The main benefit that China receives from this many-sided process of globalization are modern technologies for modernization of domestic industries.

China has turned from an isolated and closed society into the state, which is quickly integrating with other countries in the sphere of global economy, information systems, and culture. Currently, China, which is a country with a huge territory and the biggest population in the world, is a worthy competitor of western states. Economic growth of the country led to the development of all spheres of Chinese society, which made China become regional leader, and will make it a global leader in the future.

Despite of the active involvement of China into globalization process and strengthening of its external influence, traditions take the major place in all spheres of functioning of Chinese society. Undoubtedly, this has both positive and negative implications for power and management.

Positive attitude of Chinese management to economic globalization is obvious because China’s economic growth is caused by globalization and arrival of multinational corporations attracted by low cost and abundance of manpower in China. The positive view of the role of globalization in development of China becomes more and more widespread.

There are some features of the process of globalization. The influence of globalization on Chinese domestic policy is reflected in the following aspects:

  1. Requirements to the imperious political elite and the government will become less monocentric and more communicative and intellectual.
  2. Chinese domestic policy will become more open and socially focused. There is a number of questions and problems, which can be solved by citizens and the public without any intervention. Moreover, it will be reflected in the political system of a society.
  3. Regarding the activity of authorities, increasing value will be gained by political and information technologies, while the role of military force will decrease.
  4. Chinese national interests and mechanisms of their protection will have branched-out and complex character.
  5. The problem of protection of national sovereignty will not disappear, but the forms of its protection will change.
  6. The role of public and expert community will objectively rise in Chinese domestic policy.

The spread of globalization in China happens in all spheres of life. In particular, it is shown in trade liberalization, endless information stream, and development of communication facilities and technologies, which reduce the distance and transform the world into one united village.

Elimination of the gap in international relations, which exists due to adverse effects of globalization, is not simply a moral obligation but also a vital goal. Its achievement appeals to establishment of international partnership and social justice as well as to achieving equality in access to fruits of progress and globalization. Globalization can receive human measurement and can also promote balance between northern and southern societies.

In general, globalized Chinese domestic policy adheres to the “prudent strategy”. This strategy puts emphasis and prioritizes economic growth, stability, maintenance of friendly international relations, relative restraint in the use of force in combination with increasing efforts to create a more modern army. Thus, it is possible to make the following conclusions concerning the influence of globalization on the domestic policy:

  1. Communist party of China does not lose its position in the state and society, but it needs to search for new ways to adapt its program and policy. The use and transformation of traditional religious and ideological studies is one of such ways.
  2. It is established that globalization creates the need to reform the political system in China, which is focused on accumulation of democratic rates of Chinese society, elimination of excessive concentration of power, differentiation of functions between the party and the government, between the government and enterprises, and expansion of practice of elections in authorities on an alternative basis.
  3. Domestic political priorities of China in the conditions of globalization as well as ways of reforming the traditional power and management are defined.