Overview of globalization and its trends
Globalization is a complex situation that indicates the constant increase in interdependence and
interconnection of different cultures, values, norms, traditions, economies, and societies around
the globe. With the passage of time, many visible trends have been noticed that have
characterized the process of transformation. Furthermore, expansion in global investment and
trade has been observed and technological advancements and communication have supported
this expansion. This resulted in integrating the economies nationally at a global level allowing
the flow of services, work, capital, and goods across different borders (Malaviya, 2023).
Nevertheless, a lot of challenges have been developed by globalization managing which the
globe has two respond with adaptability and ease towards the trends and changing the
characterization which includes identifying and handling a balance between optimizing the
benefits acquired from interconnections and analysis of the challenges associated with it to
make sure of sustainable and inclusive global connection is formed (Lee and Stensake, 2021).
Adding more to it, innovation in technology especially in the field of communication and
information technology has given rise to globalisation. The advancement in automation, digital
communication, and the internet has entirely updated the model of business and their strategies
including the communication channels, supply chain processes, and manufacturing methods
around the globe. It has enabled the global economy to become more internally and entirely
connected (Haelg, 2020),. In addition, globalization has also impacted the individual’s mobility
which is supported by easy ways of traveling from one to another place along with offering
them good opportunities to exchange talent at a global level. Nevertheless, the globalization
trend has never been observed in a uniform manner. Even though some of the regions might
have experienced good growth in the economy and exchange of cultures but this has increased
and raised the issues of homogenization in the cultures, inequality, injustice, and challenges
related to the environment (Zajda and Majhanovich, 2021),
Impact of globalization on the liberal state
Globalization has impacted the liberal state in a significant manner by modifying its functions
and rules in different dimensions. Considering the economic circumstances, the liberal state
has to adapt to a more connected world by facilitating a global trade system, accepting the
policies, and strategies that are market-oriented, and taking part in international economic
governance systems. This modification and transitioning include a significant balance between
developing and nurturing the growth of the economy and making sure that all the regulatory
structures and concerns that safeguard the interests of the nations are taken care of. Regarding
political conditions, globalization has challenged the traditional ways of nations' jurisdiction.
(Olssen, 2020). Furthermore, delivering the states that are engaged in global treaties and
collaborations and are nurturing partnerships and alliances to identify the international
challenges, for example, trade issues, climate change, and stability of the financial conditions.
While managing to retain the autonomy they identify the issues of participated governance to
influence the international systems in an effective manner (Burgoon and Schakel, 2022).
On the other hand, the liberal states consider the cultural aspects to have a significant effect on
national identification. Globalization has impacted the exchange of cultures, communication,
and migration which has developed issues concerning traditions, norms, and values, forcing
the liberal state to strike a balance between diversity and cultures. Additionally, the social
aspect of the liberal state is impacted by globalization in a way that it has introduced different
dynamics which include the capacity to increase the inequality concerning incomes and
displacement of jobs however, the liberal states have responded to such conditions by the
implication of policies that develop growth. Investments have been made in the healthcare and
educational sectors to provide safety and minimize the consequences on social systems because
of international interconnectedness (Zajda and Rust, 2020). Therefore, according to Singh
(2023), globalization has completely the states into vigorous player that needs the world to
identify political, social, cultural, and economic challenges while addressing the issues of a
globalized world.
Globalization does not entail the weakening of the liberal state but rather stresses its role
as an economic planner
The relationship between globalization and the liberal state in the context of economic planning
develops an evolving, subtle, and significant relationship. It does not agree with the statement
that globalization entails the weakening of the liberal state as it underlines the importance of
the state as a planner of the economy. Liberal states act as the regulatory body in relationship
with globalization which is one of its characteristics (Laruelle, 2020). Since globalization
makes the economy become more connected, therefore, the need for laws and regulations also
increases to make sure that a just competition is implicated, the customers are protected, and
the market trends and failures are effectively and efficiently addressed. Liberal states are often
characterized by their obligations to free the market, implement and adapt by enforcing and
introducing laws and regulations that govern the international, domestic, and economy
curricula (Paul, 2021).
The role of the regulatory body acts as an important feature in managing the issues that develop
from international investments and trades. To add further, globalization has increased the need
for collaborative approaches among different states. Planning at an economic level has
expanded beyond the borders of nations which requires international coordination on different
issues for example, exchange rates of the currencies, agreements related to trade and finances,
and investment across different borders. Such liberal states, at the time of retaining supremacy,
indulge in global platforms that encourage international economic acts. Hence, the approach of
collaboration underlines the nature of the liberal state being adaptive in regard to globalization
(Amadi, 2020). However, on the contrary, globalization could lead to a bottom race in which
the liberal states form a competition by lowering the standards of regulation to attract
investments across borders. This creates a lot of challenges and troubles for the liberal states
to act as a regulation body and to plan the economic conditions in an effective manner along
with managing a balance between nurturing a healthy environment of business and managing
the standards of rules and regulations to protect the interest of the society (Guazzone and
Pioppi, 2022).
In addition to it, the liberal state’s planning related to economic conditions needs to identify
the challenges concerning society and social norms regarding globalization. Challenges for
example, displacement of jobs, inequality of income, and shift in cultural trends need to have
policies that are proactive so that they can be addressed and handled before any repercussions
on the economy and the people living in it. In such conditions, the state has to act as a key
player while developing the safety nests for society and developing these strategies for the
workforce to make sure of enhancing the system of education and ensure that the benefits from
globalization are shared at an international level and are completely optimized (Ye, 2020).
According to a study conducted by Sager (2020), the association between the liberal state and
globalization is complicated because globalization pertains to a lot of significant challenges
along with offering opportunities to the liberals states to influence and shape the international
governance economy.
The capacity of the liberal state to become adaptive and show its commitment to identifying
the social repercussions explains its ability to blend at a global level. In relation to the
relationship between liberal states and globalization, different dimensions of its relationship
are identified as economic planners (Teece, 2022). Globalization has forced the liberal state to
adapt and implement different regulatory structures to the kinetics of global finance and trade.
This comprises developing and implementing the rules and regulations that control the global
transitions, rights of intellectual property, and standards of the environment. In order to foster
smooth connections across borders it is important to harmonise the rules with global norms and
traditions. Moreover, regarding economic planning, the liberal states need to maintain a
balance between international markets and securing their domestic systems (Ngoc and Phan,
2021).
On the other hand, international issues which include stability of the finances, crises,
pandemics, change of climate, and global collaborations need to be addressed and participated
to sort these problems. Hence, the liberal states join forces with the international forces of
permanence such as WTO (World Trade Organisation), IMF (International Monetary funding),
and UN (United Nations), to influence and negotiate different policies and procedures.
Furthermore, engagements in the multilateral and diplomatic approaches needed to be made by
the liberal states to enforce their character as an economic planner concerning globalization
while identifying challenges that are connected with the national boundaries (Kundal, 2023).
As argued by Goldmann (2020), many researchers state that, to attract foreign firms and
investments, globalization could increase the race and lower these standards. This, however,
creates significant challenges for the liberal state in economic planning because it creates issues
in the growth of the economy and safeguarding it.
Nonetheless, to minimize these issues the country needs to plan the economy in a strategic
manner which includes developing such mechanisms that can help with preventing regulatory
challenges while encouraging responsible and good behaviour at the corporate level.
Furthermore, concerning globalization in the liberal state especially as an economic planner it
identifies the analysis of these social repercussions of internationalisation is vital. This includes
efforts to lessen the inequality of income, offer social safety, and make investments in new skill
development and educational programs to equip people with the skills required for constantly
emerging international markets (Abels and Bieling, 2023). In addition to it, the policies that
encourage diversion and inclusiveness are very important as they help make sure that the
advantages acquired from internationalization are properly disseminated equally among
different segmentations of the world (Weber, 2020).
Globalization is constantly emerging with advancements in technologies in which the liberal
state holds significant importance to foster advancements, innovation, and uniqueness with the
help of research and development programs that helps in building an environment of
entrepreneurship along with identifying the disturbances possibly caused by technological
advancements (Wang and Sun, 2021). On the other hand, planning the economy on the strategic
level includes investigating and opting for technological advancements and changes in the
technologies to make sure that the organizations and people working are completely equipped
with the necessary skills and knowledge to perform their job duties. Thus, the role of liberal
states as economic planners especially during globalization is very crucial and is not stressful.
It does not only include adapting to technological advancements and policies that are traditional
at a global level but it also includes taking part in modifying the international order of economy
(Sparke, 2022).
On the contrary, integrating the finances at a global level is also a part of globalisation in which
the capital is flown across various borders in this regard, the liberal state to plan the economy
needs to develop strong monetary regulations and policies so that they can manage stability in
their finances. In this regard, one of the major roles is played by central banks to manage the
rate of interests and exchange along with the effective management of capital to secure the
economy of the nation from disruptions and external crises (Gertz and Evers, 2020).
Additionally, the liberal states in regard to globalization take part in negotiations to increase
the access to the internal markets for their business operations. The agreements formed by
liberal states include critical planning of the economy, to address those sectors that can help the
country with benefiting it from imports and exports. Therefore, it is important for the state to
analyze the effect on traditional industries, economic competitiveness, and employment of its
people (Schindler and Kanai, 2021).
Adding more to it, the economies of countries around the world are exposed to external crises,
especially in the globalization era. This includes pandemics, financial crises, shifts in exchange
rates, etc. Hence, the liberal states while playing the role of an economic planner need to
develop backup plans and strategies to save themselves and to act wisely in a time of crisis.
These strategies may comprise of regulations related to finances, effective and efficient
healthcare sectors, and support mechanisms of this society to reduce the negative impact of
these crises and pandemics on the society and economy (Graaff et al., 2020). One of the benefits
of globalization is that it encourages and helps in transferring advanced technology systems
around the globe. However, the role of the liberal state concerning economic planning is to
develop rules regulations, and policies that help fostering the transfer of technology in a more
effective and efficient manner while safeguarding the intellectual property rights of owners.
Developing such an environment that is productive and supports creativity and innovation
makes it important for the liberal state to manage international competition (Mansfield and
Rudra, 2021).
On the contrary, the globalization impacts the environment in a negative manner. Nevertheless,
the role of the liberal state as an economic planner needs to focus on implementing green
strategies and policies to safeguard the environment which increases the stress. This includes
laws to promote the implementation of strategies and practices that are sustainable and ecofriendly along with implementing green technologies in which global collaboration is very
important to identify the challenges related to the environment (Al-Haija and Mahamid, 2021).
Considering globalization the mobility of labor has also increased however, the liberal states to
plan the economy need to identify the issues along with the opportunities linked with
international labor and workforce. This comprises investing in the programs that develop the
skills, abilities, and knowledge of the workforce that is crucial to acquire for the trending
technological advancements and competition in the international market (Bresser-Pereira,
2020).
However, on the other hand, the liberal states can optimize the economy's diplomacy as a soft
tool or power for economic planning because it plans domestic regulations and policies along
with including the efforts to increase the economic establishment, attract foreign investments,
and build up strong international alliances (Coleman and Job, 2021). Another stressful effort of
liberal states concerning economic planning includes managing the globalization of cultures.
Interconnections and internationalization bring in new dimensions of culture, values, norms,
and traditions along with different identities. Therefore, it is important for the liberal state to
identify the issues between saving their own culture and traditions along with accepting
diversity and inclusion, the Culture of others, their traditions, norms, and beliefs in an open
way. The exchange of culture in the expansion of international media often challenges the
values, trends, traditions, and norms of a liberal state, and modifies the national identities in the
global environment. Furthermore, migration is also facilitated by globalization which also
creates a lot of challenges for the liberal state especially when acting in the role of economic
planner. (Hesse and Rafferty, 2020).
The issues concerning multiculturalism and integration on social platforms make it very
difficult to manage the national cultural traditions and values therefore, it is important for the
policymakers to identify the challenges related to social issues and diversity along with
protecting the rights of minorities and making sure that they acquire benefits from diversity
and inclusion at a global level (Hangabei et al., 2020). Lastly the liberal states in the role of
economic planner and considering globalization need to take care of the advancements in
technology that are very crucial. It is important to identify the impact technological
advancements can impose on the employment, privacy, industries, and overall environment of
a country and nation. The policymakers need to develop such regulations that can balance
innovation with catering and managing the privacy concerns of everyone to act as a liberal state
(Ordenov et al., 2020).
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