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Globalization is the process of transformation of local or regional phenomena into global ones. It can be described as a process by which the people of the world are unified into a single society and task together. Globalization is a grouping of economic, technological, socio-cultural and political forces. This process is often used to pass on to economic globalization, this is, integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

This process has been produced in enlarged economic interdependence among the developed and developing nations of the world. At the end of the Second World War, the inner circumstances of the USA were favourable for it to hold up globalization. The Federal government of the United States also realized the necessity of globalization to uphold the nation’s economical border in global market. 

The biggest part of the economic affluence of the US has been the effect of open trade policy followed by the US Federal Government. With its comparatively open borders, the US has encouraged a great number of nations to get involved in bilateral trade with the US. Inflow of foreign products with zero or low tax has proved to be of great use in maintaining the US inflation rank under control. 

The process of globalization has influenced the US economy to make use of cheaper labor force of the developing nations through the process of offshoring1 and outsourcing². The majority of the multinational corporations supported in the US, get their jobs by technically skilled labor force of the developing nations like India and China. This process helps the US companies to decrease their operational costs to an important degree.

The WTO (World Trade Organization and the International Monetary Fund) had a vital position in encouraging the concept of globalization across the world states. The main aim of WTO was to create the trade disputes between various countries so that they could be settled amicably in the attendance of the leading nations of the world. The IMF (International Monetary Fund) was shaped to help the nations in times of distress.

There are created challenges for the United States of America if it has to stay on as one of the leading names in the globalization situation. One of the first levels would be for the IMF, as well as the WTO to be more tolerant with countries that are less willing to stick on to the policies formulated by these two entities. Specialists have the judgment that the USA has to approach globalization without a rigorous policy as such. It should make policies in a way so that the economic needs of various countries could be adjusted within the frame. This is expected to make globalization a flourishing and advantageous procedure for the USA.

"I would define globalization as the freedom for my group of companies to invest where it wants when it wants, to produce what it wants, to buy and sell where it wants, and support the fewest restrictions possible coming from labor laws and social conventions."

NOTES:  

1) Offshoring describes the relocation by a company of a business process from one country to another -- typically an operational process, such as manufacturing, or a supporting process, such as accounting. Even state governments employ offshoring.  

2) Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party  company.

(Read the Helpful Information About the Globalization and Financial Crisis)