Emile Durkheim is best known for his macro-level views of social reality and its ties into the individual level. Emile Durkheim proved to be a sociologist who played a vital part in the development of structural functionalism and sociology as a whole. According to Durkheim, societies like the United States are held together by organic solidarity or contractual solidarity. How it works in period of globalization? Factors that have contributed to globalization include increasingly sophisticated communications and transportation technologies and services, mass migration and the movement of peoples, a level of economic activity that has outgrown national markets through industrial combinations and commercial groupings that cross national frontiers, and international agreements that reduce the cost of doing business in foreign countries. Globalization offers huge potential profits to companies and nations but has been complicated by widely differing expectations, standards of living, cultures and values, and legal systems as well as unexpected global cause-and-effect linkages.
Unquestionably, the events of September 11th have reshaped the debate over globalization. Foreign assembly operations have become less attractive to U.S. corporations now that there is the fact, or even the danger, that their trucks will be stuck in mile-long queues at the U.S.-Canada or U.S.-Mexico border. Companies like McDonald′s and Starbucks, whose main opportunities for market growth are outside the United States, now must factor in extra costs of security when contemplating opening another outlet abroad. Computer programmers from India and graduate students from Pakistan will face additional hurdles when attempting to obtain temporary residency in the United States, and American companies will think twice about posting their executives abroad. Foreign trade, foreign direct investment, and international migration all will grow less quickly than they did before the terrorist attacks.
The terrorists targeted the World Trade Center because it was a symbol of American capitalism in one of its most visible manifestations, American financial markets. Among the victims were large number of persons who worked for companies, foreign as well as domestic, whose business was international finance. This points up the question of how international capital flows will be affected by these events.
One of the major impact of the globalization is the interconnected global economy, financial crisis that started in US affected the entire world. Both politicians and economists argued that the globalization made the financial institution failures cascades to all the business sectors all over the world. Politicians may put financial regulations that may put capital control restrictions on the companies. But this will not adversely affect the financial globalization trends.
In conclusion , Globalization has various aspects which affect the world in several different ways: industrial, financial, economic, political, informational, ecological, cultural and sociological. There are two views on globalization: Many in the Third World see globalization is a positive force that lifts countries out of poverty. The opposition often combines environmental concerns with nationalism.
U.S. Foreign Economic Policy After September 11th
Barry Eichengreen, Professor of Economics and Political Science, University of California, Berkeley