Globalization's Effect Term Paper

Pages: 17 (5279 words)  ·  Bibliography Sources: 10  ·  File: .docx  ·  Level: Master's  ·  Topic: American History

The United States has been a leader in encouraging the cross-border deals for the advancement of domestic opportunities. While there are numerous opportunities to derive from the inter-relations of business opportunities with other countries, the United States often faces fundamental challenges in balancing the interest of the national security with the national economy. The September 11, 2001 attack has made the United States to implement stricter control in the foreign direct transaction. (Travalini, 2009).

The review of the literatures explores the impact of globalization on the security of the United States to enhanced greater understanding on steps that the country will take to enhance its national security.

Effect of Globalization on the National Security of the United States

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The United States has experienced both positive and negative impact from the advent of globalization. Typically, globalization has allowed the U.S. To open their economies to enjoy the benefits of foreign trade. Through development of societal norm, globalization has allowed many small companies in the United States, which are unable to compete successfully in the domestic market to secure market for their products at international markets. With the rapid development of internet technology, it is possible to transact business online with other countries around the globe and export the goods and services produced within the United States to other countries. U.S. has the largest online retailers in the world, which account for almost 40% of the global sales. While other countries have not exploited the benefits of internet business, the United States has already exploited the online business to its advantages. In 2009, the U.S. online retail sector reached approximately $134.9 billion.

Term Paper on Globalization's Effect on the United Assignment

Added advantages that the United States is enjoying from the globalization are that the country has been able to have access to the pool of skilled workforce around the globe, which leads to the increase in the global cooperation. While the United States has largest number of post-secondary educational system in the world, more than half of workers in the United States do not have post-secondary degree certificates. Meanwhile, many employers often rely on foreign skilled workforce to boost productivity. (Datamonitor, 2011). Globalization has also assisted many corporate organizations across the United States to lower their costs of operations thereby enjoying super normal profits. Typically, many companies in the United States outsource part of their services to other countries, which offer lower price for their services. By opening up cross-border cooperation and use internet technology to transact business, many corporate organizations have been able to record super normal profits at the end of the fiscal year.

More importantly, globalization allows many corporate organizations in the United States to raise foreign capital. It is now possible for foreign individuals or foreign corporate organizations to buy shares or bonds of the U.S. companies, and this allows many corporate organizations to raise foreign fund to enhance their business operations. Report provided by Datamonitor (2011) also reveals that the U.S. is the largest recipient of foreign direct investment in the world, and largest foreign direct investor globally. Large inflow of foreign investment has assisted the United States to enjoy economic growth, which is higher than other developed nations around the world. Typically, the stock of foreign direct investment into the United States increased from $2.4 Trillion in 2009 to $2.5 Trillion in 2010 and the stock of U.S. investment abroad increased from $3.4 Trillion in 2009 to $3.6 Trillion in 2010. Similarly, globalization has significant impact on the United States educational system. Many college and universities are now providing online education to increase their revenue. Many educational institutions have taken the advantages of globalization to offer course online to students around the world. The United States has been able to surpass other countries with reference to online education because the United States has an efficient educational system and quality of the U.S. educational system is ranked as the best in the world. The standard of the U.S. educational system has assisted the country to record largest enrollment of online students around the world.

Despite the benefits that the United States is enjoying from the advent of globalization, there are still mixed opinion on whether the benefits derived from the globalization actual outweighs the negative impact. Worden and Freese (2003) argue that globalization has been a source of threat to the national security standard of the United States. From the economic perspective, foreign direct investment increases the prevalence of acquisitions of the U.S. companies by foreign investors. Typically, the issue has made a significant number of the U.S. companies to be controlled by foreign individuals or foreign government. Moreover, globalization allows foreign governments to weaken the economic and social structure of the United States. The continuous of opening of the U.S. border to foreign trades and flow of human capital facilitates unethical practice such as terrorism, drug trafficking, and child kidnapping. Thus, balancing the desire of globalization with the national security has proven challenging for many nation states. In the United States, the global transaction has threatened national security. However, the prevalence of the country high unemployment rates necessitates the considerations to attract foreign investment and the issue needs to be taking into national security consideration. While foreign investments bring investment opportunities into the United States, however, allowing foreign investments opportunity into the United States without implementing necessary control increases the possibilities for the illegitimate and malicious foreign investments in the United States as well as acquisitions and large mergers. Typically, foreign ownerships of American corporate organizations provide the opportunity for the parent company to be present in the United States. The issues could raise a national security concern if the purchasing country's interest is different from the U.S. economic objective. Thus, it is imperative for the United States government to put a control in place to limit the malicious foreign investment. Meanwhile, there has been a growing resentment among population on the continuous liberation of trade and globalization. The resentment is to decline the off-shoring services and raise protective barriers against foreign trade. It is also widely believed that outsourcing has widely led to the disparity between the income of skilled and unskilled labor. Typically, outsourcing has generally depressed the income of low skilled workers. A handful of states such as Indiana, North Carolina, Michigan, and New Jersey have already passed anti-outsourcing law. Federal government also passed anti-outsourcing law in 2004 barring corporate organizations from engaging in sub-contract with low cost nations.

More U.S. national security concern is the growing incident of terrorist attack globally. In the contemporary international system, nation states are losing ground against terrorism. Many terrorist groups are increasingly hostile to the United States because there is a general believe that the United States is increasingly interfering in the internal affairs of other states. Worden et al. argues that while globalization has increased the network of integration among people and organization, however, the globalization has diminished the units of identification. The globalization has led to the encroachment on the security of the United States. With serious threats on the territorial integrity of the nation states, the need to strengthen the national security of the U.S. becomes evident. Over the years, the United States has been under the threats of terrorist attack making the United States to become the top terrorists' target. (Datamonitor, 2011). On several occasions, the United States embassies at different part of the world have come under severe terrorist attack. "The dark side of this globalized world came to the forefront for the American people on September 11, 2001." (White House, 2010 P. 1). The issue made Bush regime to vehemently seek for the cooperation of European governments to combat terrorist attack. Worden and Freeze argue that globalization assists the terrorists to have capability to encroach on the national security of the United States.

The rapid development of information technology and advancement of telecommunication has also made many non-state actors to attack the United States from global space. For instance, there was an electronic attack on the United State in 2002 that crippled 13 important servers, which were critical to the internet connection. Many individuals and group also perpetuate cyber-terrorism on the United States. Some individuals have taken the advantages of fast internet connection to attack the server of several organizations in the United States and steal sensitive information. Perpetuators often use free WI-FI internet at hotels and coffee shop to intercept, and modify communication-taking place between business organizations. This attack is possible because many WI-FI spots have limited security or provide no security for their network. Typically, some hackers often open WI-FI spots and mount a "man in the middle" to obtain valid passwords and the usernames of the people using their networks. Attackers often use this technique to gain access the corporate computer systems. The attack often targets the corporate organizations in the United States to gain access to confidential information. With advance in the development of information communication technology, it is possible to remotely gain access to the corporate computer system. Such attack… [END OF PREVIEW] . . . READ MORE

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How to Cite "Globalization's Effect" Term Paper in a Bibliography:

APA Style

Globalization's Effect.  (2012, May 21).  Retrieved April 17, 2021, from

MLA Format

"Globalization's Effect."  21 May 2012.  Web.  17 April 2021. <>.

Chicago Style

"Globalization's Effect."  May 21, 2012.  Accessed April 17, 2021.