Globalization has resulted in increased economic interdependence among the developed and developing nations of the world. At the end of the Second World War, the internal conditions of the United States of America were favorable for it to support globalization. The Federal government of the United States also realized the need of globalization to maintain the nation’s competitive edge in global market.
As we enter the 21st century, we find the United States of America as the unchallenged economic leader of the world. Much of the economic prosperity of the US has been the result of open trade policy followed by the US Federal Government. With its relatively open borders, the United States has encouraged a number of nations across the world to get involved in bilateral trade with the US. Inflow of foreign products with zero or low tariff has proved to be of great use in keeping the US inflation level under control.
Globalization has also helped the US economy to make use of cheaper workforce of the developing nations through the process of offshoring and outsourcing. Majority of the multinational corporations based in the US get their jobs done by technically skilled labor force of the developing nations like India and China. This process helps the US firms to reduce their operational costs to a significant extent.
The World Trade Organization and the International Monetary Fund played crucial role in promoting the concept of globalization across the nations of the world. The World Trade Organization was created so that the trade disputes between various countries could be settled amicably in the presence of the leading nations of the world. The International Monetary Fund was created to help the countries in times of distress.