To what extent have the processes of globalization resulted in a Essay

To what extent have the processes of globalization resulted in a decline in the relative importance of the TRIAD economies - Essay Example This paper looks into the processes of globalization, the triad economies and the extent to which the processes of globalization have resulted in a decline in the relative importance of the TRIAD economies (The triad consists of the European Union, Japan and the United States). Globalization is not new especially so considering the fact that people, for thousands of years, and later, corporations, have been buying from as well as selling to each other at great distances lands, for example, through the renowned Silk Road across Central Asia that in the middle ages connected Europe and China. Similarly, people and corporations for centuries have invested in ventures in other nations. In effect, several of the prevailing features prior to the First World War outbreak in 1914 are analogous to those of the current wave of globalization. However, during the past few decades, there have been developments in policy and technology, which have stimulated increases in cross-border investment, trade as well as migration. The increases are so large that majority of observers believe that the world has gotten into a qualitatively new phase as far as its economic development is concerned. For instance, the world trade volume has risen by 20 times since the year 1950, and foreign investment flows almost doubled from 468 billion dollars in the year 1997 to 827 billion dollars in the year 1999 (Globalization101.org 2). According to Chase-Dunn, the processes of globalization include political, cultural and economic processes. The modern-day transnational corporate networks’ growing stature as well as the growing interconnectedness of services, goods, markets and finances heavily influences these processes. Cvetkovich and his co-authors note that this influence entails the formation of a new global culture, new transnational political organizations and a new world market. This globalization process involves a dialectical relationship between its political, cultural and