Topics: Globalization, International relations, Multinational corporation Pages: 3 (1350 words) Published: September 7, 2014
Globalization is defined as worldwide networks of interdependence. (NYE, 255) The phenomenon itself has been around for thousands of years in different dimensions. These dimensions are environmental globalization, military globalization, social globalization and economic globalization. Economic globalization is the highlight of the 21st century globalization, but globalization has spilled-over beyond the economic sphere. Joseph Stiglitz argues that knowledge-based economy generates “powerful spillover effects, often spreading like fire and triggering further innovation and setting off chain reactions of new inventions”(NYE, 258) In the 21st century globalization, most of the effects happen in the capitalist economic sphere (e.g. trade, multinational cooperation etc.). Since networks are more interconnected, however, the spillover effects spill over to the social, political and environmental divisions. The rise in inequality and poverty as capitalism and free trade spread around the world is an example of these spillover effects. Also, changes in economy trigger policy changes (e.g. United States policy change in the 2008 financial crisis) or political turmoil with groups opposing globalization as a whole, which are also spillover effects. Another spillover effects is more consumption and an increased usage of resources. Globalization comes with implications. There may be domestic conflict (generally against globalization). In paces like Sudan, Afghanistan and Iran, conservative groups have resisted globalization strongly, even violently (NYE, 260). States are more sensitive and vulnerable to system effects. Domestic politics may change (either the policy government implements or the states method of governing–many states became democratic capitalists as globalization spread). The definition between domestic and international blurred. Nowadays, many domestic decisions have international effects. It is harder to fight the five global wars: drugs, arms...
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