Attached.

Running head: GLOBALIZATION AND GREAT RECESSION

Globalization and Great Recession
Institutional Affiliation
Date

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Question 1: Globalization and the Great Recession
Globalization is the term that has deeply used by different literature materials. According
to Eriksen (2018), globalization is the term that indicates the interdependence between cultures,
economies, and the population of the world. It is brought by the cross-border trade, flow of
knowledge, goods, and services, and migration of people. Globalization is the term that was
coined after the end of the cold war. Eriksen (2018) highlights that globalization signifies the
growth of capitalism globally. Different nations have created an economic partnership that
allows them to exchange goods, services, information, and technology. The economic
partnership not only allows the exchange of goods and services among those countries, but it also
sustains the movement of people from one country to another. Ideally, globalization has heavily
integrated the world economic system. In this case, the article will review the relevance of the
statement that the great depression between 2008 to 2009 exposed the deep flaws of the hyper
globalists and has posed the need to critically reviewing how the IPE deals with globalization.
Hyper-globalists Perspective on Globalization and IPE Can Deal with Globalization
It is known that the great recession which took part between 2008 and 2009 indicated the
flaws in the framework of the hyper globalist. The great recession is the period where there was
an economic downturn. The great recession was caused by the financial crash in the United
States financial market, which later spread to other countries (Manera, 2016). Although the great
recession began in the United States, it heavily impacted other countries in the world. The
developing countries were worse hit by the great recession. Most countries experienced a
shortage in the expenditures, and the business began running into bankruptcy, an increase in the
level of unemployment, and stagnation in the salary growth. In other words, the complexity of

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the great recession negatively impacted the country's economic stability. In this period, most
financial businesses collapsed, and the level of unemployment increased led to a dramatic
decline in the level of household expenditure.
According to hyper globalists argue that the globalization has a positive impact globally.
They argue globalization accelerates the expansion of international capitalism and erodes the
local cultures, thus resulting in an emergency of a homogenous global culture. According to
Eriksen (2018), globalization is characterized by the spread of democracy, expansion of
economic growth, and it increases prosperity. Some theorists argue that globalization occurs as a
result of the removal of the trade barriers between countries, which encourages free trade as well
as a free market. The market liberalization among countries in the global network generates
economic development. Eriksen (2018) argues that market liberalization encourages the
generations of wealth, which trickles down to everyone. Some theorists have heavily criticized
the aspect of globalization. They argue that globalization encourages westernization or western
bias. In this case, the great recession indicates the harmful impact of globalization. It indicated
the inability of the countries to regulate their economies. The scenario of the great recession
manifests the complexity of how international finance is intertwined and thus indicating the
inability of some of the countries to make their financial policies or decisions.
Globalization has widened the inequality level in the global perspective as some
developed countries make a decision over the less developed countries. Globalization favors the
countries which are more developed and have economic bargain when compared to less
developed countries. The less developed countries often are not able to make intrinsic decisions
concerning their economic, political, and social directions (Eriksen, 2018). The less developed
countries perceive that the developed countries use globalization to secure access to markets of

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the developing countries, and yet they fewer benefits from it. For instance, president Yoweri
Museveni of Uganda said that globalization is "the same old order with new means of control,
new means of oppression, new means of marginalization” (What is International Political
Economy n.d). Indeed, the developing countries are heavily impacted by changes in global
prices, especially in the changes in energy and food. Globalization has made some countries
vulnerable or susceptible to global financial market changes. The IPE needs to address a growing
level of inequality in the countries. Meyer (2017) argues that globalization prorogates
marginalization and a rise in the poverty level in some regions or countries in the global
economy. The IPE needs to lay its attention on how to minimize or eradicate the level of
inequality and ensure that some regio...