The paper "Has Globalization Reached Its Peak" is a great example of business coursework. The end of the world wars was the beginning of the notion of globalization. It was in this era that there was seen the need to create international organisations and institutions that eventually lead to the integration, interdependence and the coming together of all nations. In the recent past, there has been seen a rise in the protectionism strategies by different countries. Nations are engaging in antics that indicate that more and more countries are moving away from the globalized world.
This has been ranging from the sanctions on Ukraine, Trade tariffs being put up by India, the rise of China as a trade leader and the most recent on the exit of Britain from the European Union. If there is a chance that countries are pulling away from the globalized community, then is it an indication, that in this era, globalization has already reached its peak? This paper will focus on the strategies and events that indicate that indeed it’ s the peak of globalization in this era.
This paper will also analytically look at the arguments and occurrences that accelerate this situation and finally if there is any chance that the rise in global trends and political support can be sustained. The Peak Of Globalization: Defined Globalization has yet to receive a clear definition that is agreed to by all parties. However, there is an agreement of what includes the components of globalization. The Mc Kinsey Global Institute report (Bloomberg) defines globalization to include: trade in goods and services; financial flows; mobility of people; and the exchange of information.
It is also evident that this flows as described are propelled by the increase I technology and innovation. The McMillan dictionary defines a peak as the highest point or the greatest level that can be reached. In economics, the pointed peak is seen as the point between expansion and contraction. Combining the latter definition of peak and globalization, this paper will adopt the meaning that implies that globalization has reached its peak if it has reached its greatest level. This definition will also include the circumstances that are construed to imply that people or nations are shunning away from the globalization. Globalization in Perspective Collins (2014) in his report in Fidelity International identifies the second era of globalization, spanning over the last 30 years, has seen the globalization of trade, finance and culture and politics reach its maximum.
He has likened the trend to a global financial market. The first era was characterized by increased trade and opening up of borders trough increased technologies while the second era is driven by faster and cheaper communication channels. It is also characterized by an increase in a foreign investment where investors are willing to take their money wherever they think that they will earn a higher interest (Collins 2014).
However, the achievement of a global economy has not always been smooth especially in the diverging views on how integration should take the course (Segal and Abdelal 2007). The main goal for which globalization was being supported was for its perceived ability to reduce the gap between the rich and the poor countries such that as a global economy, even those that are losers are duly compensated.
However, this has seen not to be fruitful. In fact, this factor has been seen as the main motivator for the Brexit vote against the European Union (EU).
Alden E and Schwartz B July 2016 if you want to save globalization, here’s how [online] available from: https://www.weforum.org/agenda/2016/07/from-brexit-to-trump-it-s-been-a-testing-year-for-globalization-but-it-s-not-too-late-to-save-it accessed 28/10/2016
Altomonte C, Colantone I and Zaurino E September 2015 Has globalization ‘peaked’? Trade and GDP growth in the Post-crisis context [online] available from: https://bruegel.org/2015/09/has-globalisation-peaked-trade-and-gdp-growth-in-the-post-crisis-context/ accessed 28/10/2016
Collins M November 2014 Globalization has peaked [online] available from: www.fidelity.com.au/insights-center/investment-articles/globalisation-has-peaked/ accessed 28/10/2016
Coy P April 2014 Globalization’s Peak Year Was 2007 [online] available from: www.bloomberg.com/news/articles/2014-04-23/globalizations-peak-year-was-2007 accessed 28/10/2016
European Union Newsroom EU sanctions against Russia over Ukraine crisis [online] available from: https://europa.eu/newsroom/highlights/special-coverage/eu_sanctions_en accessed 28/10/2016
Lund S, Daruvala T, Dobbs R, Harle P, Kwek JH and Falcon R march 2013 Financial globalization: retreat or reset [online] available from: www.mckinsey.com/global-themes/employment-and-growth/finanacial-globalization accessed 28/10/2016
Meadway J September 2015 What if we’ve reached peak globalization? [Online] available from: www.theguardian.com/sustainable-business/2015/sep/28/peak-globalisation-have-we-reached-it-uk accessed 28/10/2016
Nussbaum B December 2010 Peak Globalization [online] available from https://hbr.org/2010/12/peak-globalization Harvard Business Review accessed 28/10/2016
O’Sullivan F February 2016 Europe’s Open Borders are crumbling [online] available from: www.citylab.com/politics/2016/02/eurpopean-union-open-border-belgium-checks-syrian-refugee-isis/470733/ accessed 28/10/2016
Segal A and Abdelal R February 2007 Has Globalization passed its peak? Foreign Affairs
Solomon E June 2016 have we already reached peak Globalization? [Online] available from: www.macleans.ca.news/canada/have-we-already-reached-peak-globalisation/ accessed 28/10/2016
Subramanian A and Kessler M 2013 the hyper globalization of Trade and its Future [online] available from: https://papaers.ssrn.com/sol3/papers.cfm?abstract_id=2297994 accessed 28/10/2016