Most countries and major corporations today have jumped on the economic bandwagon that is globalization.

In one aspect, globalization allows corporations to take goods produced from all over the world, and combine them to make a final product that they can then market in their own country, and across the world. In another aspect, globalization is the act of a company spreading itself out all over the world. This allows them to market themselves worldwide, and prosper as a globalized company (McDonalds is a perfect example of this). A globalized economy has many characteristics; some are economic, some are cultural. A globalized economy has increased international trade. This comes from the country or corporations ability to trade goods or services with countries or corporations all over the world. A globalized economy creates certain organizations, such as the World Trade Organization, that regulate the trades going on throughout the world. A globalized economy also allows for a cultural exchange. When goods from the USA are sold in China, the culture of the US is sent along with the products being sold. These products could be movies, music, clothing, books, or food. Trades like this lay the foundation for a more uniform global culture. For the vast majority of countries and corporations, globalization is a relatively new idea (when compared to how long the human civilization has been involved in economic exchanges). Alan Taylor, from the National Bureau of Economic Research, says that the first major signs of globalization didnt appear until around 1870. He defines the time period from then to the start of World War I as the first era of globalization. Taylor looked at the amount of money invested in foreign stocks, and compared it to the global GDP. He determined there was a very substantial rise in global

economy. During this time, there were a lot of companies joining the international market for goods and services. The global economy then declined from 1914 until it began to rise slowly in the late 70s and into the 80s, and then it boomed in the last two decades of the twentieth century. Taylor states that this rise in the comparison of foreign stock investment and global GDP indicates a second era of globalization. Taylor also states that a global economy is always attempting to maintain three things: a stable currency exchange rate, a flexible source of international capital, and a stable monetary policy. These three things help the global economy remain stable, have access to a convenient source of capital, and have a consistent set of monetary guidelines that allow for easier trading. From 1914 until the late 1970s, the world was involved in two major events: World War I and World War II. The U.S. was also involved in a series of other international wars after these two. When major global crises like these occur, there is bound to be a hiccup in a globalized economy. It took a number of decades for the world to bounce back from these global events, and eventually the global economy climbed again. Globalization is a major process that involves the entire world. Consequences, both good and bad, are unavoidable. In an article by University of Connecticut professor Mohammed Zaheer, he outlines the consequences of globalization in four parts: economic, technological, developmental, and societal. From an economic perspective, a positive consequence of globalization is the fact that globalization increases the amount of trade happening around the world. From a technological perspective, globalization has forced us to further develop our means of travel, communication, and transportation of goods. We have developed each of these important aspects of society so that they are

more efficient, less expensive, and quicker. From a developmental perspective, globalization potentially threatens jobs and companies that are not globalized. Companies that are globalized make more money than those that are not, which causes a very uneven distribution of GDP in a society. People in these societies are unhappy about that, and attempt to dissuade companies from globalizing so that they can keep jobs and production of goods in their own country. From a societal perspective, globalization spreads cultures. Societies can draw from the traits and ideals of another globalized society, and improve upon their own society by adopting these ideals and values. McDonalds is an example of an influential company that, through globalization, has spread American fast-food cuisine across the world. According to Central University of New York professor Dr. Lavender, there are over 30,000 McDonalds restaurants spread across 119 different countries. This is a good indicator of the globalization level of McDonalds. However, even though the McDonalds Corporation is owned by America, most locations are franchises. This allows the owners to buy goods locally, and handle the business on a local level. McDonalds also develops menus for each specific country and cuisine. A McDonalds in India may serve traditional Indian food, fast-food style. However, it would also offer the classic menu offered in the US. These facts just scrape the surface of how globalized McDonalds is. According to Thomas Friedman, a columnist for the New York Times, McDonalds has the power to prevent conflict. He theorizes that no two countries that both have a McDonalds in them have ever fought against each other in a war. Based on Friedmans theory, McDonalds goes beyond just exchanging goods and services throughout the world. It goes on to spread culture, thoughts, hopes, and American ideals to other countries.

Globalization is inevitable. When we, as a human race, have the tools, means, and opportunity to trade and make money on a global scale, we will take advantage of it. While I think its important that the US maintains its GDP by manufacturing and producing goods and services domestically, I think it is equally important for us to ensure our top position in the global economy. That will allow us to afford more jobs within the country. It will allow us to begin balancing our budget. And if that means outsourcing or investing in foreign companies, then that doesnt sound like such a bad thing. The bigger issue is making sure that the revenue we make from investing in the rest of the world is going to creating new jobs, improving education systems, and providing people with the tools they need to be successful. In the end, that is going to increase our economy and our GDP, and maintain our position as the wealthiest country in the world.

References Friedman, Thomas L., The Lexus and the Olive Tree. April, 1999. http://www.thomaslfriedman.com/bookshelf/the-lexus-and-the-olive-tree Frost, Martin, Globalization. http://www.martinfrost.ws/htmlfiles/globalization.html Lavender, Catherine M., What Is Globalization? March 2nd, 2005. http://www.library.csi.cuny.edu/dept/history/lavender/global/04%20what%20is% 20globalization.pdf Taylor, Alan M., Globalization and New Comparative Economic History. Winter, 2006. http://www.nber.org/reporter/winter06/taylor.html