The leading tendency of globalization is its presence even in those countries where other trends of the current world economy are weakly and hardly noticeable. According to Martin et al. (2018), “it is a complex admixture of different, though interrelated, historically evolving developments and transformations—economic, technological, cultural and social” (p. 4). The centers for the globalization of global finance are the three largest economies: the USA, Western Europe, and Japan. However, financial speculation extends far beyond the designated regions. Due to the influx of speculative capital into any country, its position may be destabilized, and the amount of funds received will be larger than necessary. The current high rates of global finance globalization are a crucial cause of risks and vulnerabilities in the global economy. The purpose of this paper is to discuss the globalization process in three countries of different continents.
The relations established between the United States of America, Japan, and the countries of Western Europe occupy a special place in international relations. All participants in this triad have strong positions in the world economy, which reinforce their authority on a global level. They all belong to the group of developed Western democracies that have common interests and share views on the further development of society. This unites countries in the face of internal challenges generated by the essence of their political structure. Under a democratic regime, the risk of destabilizing factors within the country is much higher than under authoritarianism. Therefore, the need for joint consultations between countries on domestic political threats under democratic regimes is a critical consolidating factor.
Globalization has a different impact on these countries. For instance, according to Shahbaz et al. (2018), “although the Japanese economy has been industrialized, its urban economy now faces declining population growth, which may slow the growth of industry. The lower rate of industrial growth will not only hamper the process of rural-urban migration but also decrease the long-run economic growth of Japan” (p. 558). The solution to this problem requires cooperation with other developed states. Another issue is competition among various influential countries. Witt (2019) assumes that “anything that strengthens China undermines the ability of the United States to maintain the international economic order it built” (p. 1060). This trend is also visible in some European countries, and its “result is increased competitive pressure on developed economies like the UK” (Perraton, 2015, p. 242). Therefore, these countries should not forget that it would be much more productive to face common global problems together.
Another problem of globalization is related to the question of who benefits from it. In fact, rich countries or individuals get the majority of the benefits. The unfair distribution of benefits from globalization poses a threat of conflict at the regional, national, and international levels. Therefore, it is necessary to create a world system that would make it possible to extract the maximum positive effect from globalization while minimizing its costs. The basis of such a system can be cooperation between countries and dynamic innovations in this area, including the formation of new international institutions.
In general, there are many possible ways to cooperate in solving globalization problems. These include the strengthening of existing and the formation of new international institutions. The global cooperation of this type is an essential mechanism for addressing the issues posed by globalization. With it, people can achieve stability in a globalized world, come to economic growth everywhere, and transition to a market economy in the former socialist countries. It will also help accelerate the development of the poorest countries and solve the globalization problems of a non-economic nature. The political, cultural, and economic unity of the USA, Japan, and Western Europe is an integral part of modern international relations. It can only be undermined by processes opposite to globalization: unilateral actions and isolationism. Thus, their cohesion and fruitful joint work should not stop since the state of the world’s economy depends on this interaction.
References
Martin, R., Tyler, P., Storper, M., Evenhuis, E., & Glasmeier, A. (2018). Globalization at a critical conjuncture? Cambridge Journal of Regions, Economy and Society, 11(1), 3-16.
Perraton, J. (2015). Globalisation and the UK economy since the 1990s. In J. Green, C. Hay, & P. Taylor-Gooby (Eds), The British Growth Crisis. Building a Sustainable Political Recovery: SPERI Research & Policy (pp. 242-260). London, UK: Palgrave Macmillan.
Shahbaz, M., Shahzad, S. J. H., & Mahalik, M. K. (2018). Is globalization detrimental to CO2 emissions in Japan? New threshold analysis. Environmental Modeling & Assessment, 23, 557-568.
Witt, M. A. (2019). De-globalization: Theories, predictions, and opportunities for international business research. Journal of International Business Studies, 50, 1053-1077.