Question

What is “globalization” and how has it transformed the American economy? Describe what is meant by deindustrialization and the emergence of the service economy. How has this transformation affected Americans and the relationship of the American nation to the rest of the world?

Answer 1

Globalization is the process by which a country trades with the rest of the world and by which a firm develops business and sells on an international scale. There are there types of globalization process, economic, social and political. Economic globalization refers to the relationship that the world economies build economically ie in terms of selling and buying. Whereas social globalization is the integration of the social and cultural thoughts.

Globalization has left a very positive mark on American economy and its people, it has provided them with cheaper, a wider range of products. After globalization America has been left with a win win situation with its industries now selling to a global market and as a country America has a huge influence over the global market. The standard of living of the Americans has increased after consuming goods of lower prices and high quality from other nations which have cheaper labour to produce goods with low prices. With its trade deficit increasing the nation has had a positive impact of the foreign direct investments and has stayed on top of other economies.

Deindustrialisation is the opposite of industrialization which means emergence of industries and setting up of the industrial sector of an economy. Hence, deindustrialisation process refers to the disintegration of the industries and the industrial sector. The emergence of the industries and service sector began around the beginning of the 80s in the U.S. The manufacturing of goods which was originally done my human labour had now been replaced by the machines and the industries were taking a step forward towards industrialization by being more technically advanced and increasing productive efficiency. There were many factors which played a role in this industrialization process like development of new products and improvement in the production process, many immigrants came to America which increased the working population, development of the railway system which helped in the transportation of goods. With the development of services sector the investment and banking system also strengthened and helped in the setting up of new industries. All these factors helped America become the fastest growing nation and with the process of globalization and the integration of the world economies the relationship of America became stronger, America now trades with China, canada , mexico and other nations with the flow of goods and services approximately worth 600 billion dollars with each nation. Hence the industrialization process in America had paved the way for it to be a great nation that it is today.