How Globalization Has Impacted Government and Decision Making

When globalization was initially appeared in the global arena, China watched it suspiciously since they perceived some hidden agenda at the backdrop of globalization. China earlier perceived globalization as the continuation of capitalism . China though, globalization as, an effort by the capitalist countries to loot the resources and wealth of other countries. So, China stayed away from globalization initially. However, after few years after the introduction of globalization, China’s illusions and misinterpretations about globalization started to melt down. At present China is the number one exploiter of globalization and they opened their economy and market wider than any other country in the world for foreign direct investment. Moreover, China is the number one trade partner at present for the United States. The ideological differences or the different opinions on global issues never prevented China from establishing close trade relationships with America. In short, globalization succeeded in bringing contrasting cultures and political systems much closer.When globalization was initially appeared in the global arena, China watched it suspiciously since they perceived some hidden agenda at the backdrop of globalization. China earlier perceived globalization as the continuation of capitalism . China though, globalization as an effort by the capitalist countries to loot the resources and wealth of other countries. So, China stayed away from globalization initially. However, after few years from the introduction of globalization, China’s illusions and misinterpretations about globalization started to melt down. At present China is the number one exploiter of globalization and they opened their economy and market wider than any other country in the world for foreign direct investment. Moreover, China is the number one trade partner at present for United States. The ideological differences or the different opinions on global issues never prevented China from establishing close trade relationships with America. In short, globalization succeeded in bringing contrasting cultures and political systems much closer. According to Lauder et al (2006), many people tempted to think globalization as the process of transportation of jobs, ethnic and cultural composition of nations etc from one country to another . The above assumption is true up to certain extent. As stated before, many Chinese people are currently working in America and many Americans are doing business in China at present. It was difficult to think of an American firm establishing business ventures in China, a couple of decades before. Earlier, China disallowed the foreign direct investments in their soil because of their suspicions about the intentions of the foreign firms. However, at present China realised that without foreign direct investment, a heavily populated country like China cannot develop properly. Dharam Ghai (1997), has mentioned that free market and private enterprise were the principal mechanisms for promoting economic activities in the sphere of economic globalization.