Globalization is the interdependence of world economies that results in the growth of international trade. After the cold war, foreign policy makers believed that the encouragement of globalization would lead to a rise in both the US economy and the global economy, and it did when the Soviet Union fell, because the Soviet satellite states were able to join the global economy. The collapse of communism reinforced ‘western’ visions and western models of development for modernization. The fall of communism also brought notice to the fact that trade is import to the development of a country. In the East Asian system of capitalism and models of development, governments invest in themselves to stimulate growth in the private sector. This model of development is most prevalent in Taiwan, Singapore, South Korea, and Japan; these are all examples of export led countries. The post-Cold War period has been defined by globalization because economic policy, …show more content…
This expansion of international trade, investment, was generated by advancements in technology and the development of economic and political systems. Globalization is basically capitalism on a global scale than on a national scale. Some capitalist countries are: the United States of America, Canada, the United Kingdom, Australia, and New Zealand. A capitalist country bases their economic system on the principle of laissez-faire; they let the market run it’s self with little to no government intervention. This differs from the socialism because in a socialist economy the government controls the methods of production. In socialism, economic systems are central. There is this notion of globalization of capital, which is the globalization of: labor, the investment of capital, and societal interactions, this enhances the relationship of globalization and