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Discussion
The audio files suggested for listening and analyzing enlarge on the problem of financial crisis. Here, it is possible to see the apparent link between the financial crisis and globalization upon their closer consideration. In particular, the first audio file titled as Another Frightening Show about the Economy presents the dialogue between the radio anchor Ira glass and the producer Alex Blumberg and economic expert Adam Davidson explaining the emergence of mortgage crisis.
With the help of simple examples, the representatives have briefly outlined the main reasons of commercial crisis. Hence, they state that the origin of commercial paper recession lies in constant circulation of securities that replaced the product circulation. Another problem tackled in the interview is that of security at the commercial paper market, since there is no guarantee that banking establishment will return the money back. Finally, the economic expert has also paid attention to the problem of old tradition of bank conduct, which cannot reckon with the current situation thus negatively influencing the global economy (Blumberg 2008a).
The second interview titled as The Giant Pool of Money (Blumberg 2008b) again refers to the consideration of the financial crisis by the producer Alex Blumberg and Adam Davidson, which is prior to the previously mentioned interview. During the interview, both producer and NPR economic correspondent discuss the reasons of the merger of the USA into the housing crisis. They have depicted the picture of how banking systems manipulate the enormous sums of money deposited by plain people who hope for returning their money back.
Upon listening to these audio files, it is possible to see the evident link between the financial crisis and the globalization processes. In particular, it is the globalization process that negatively affects economic situation in the world. This is explained by the idea that globalization “was launched by modern scientific and technological revolution, guided by commercial opportunities, and driven by a craving for more profits” (Gordon et al. 2004, 88).
It should also be admitted that the globalization process has also contributed to the development of the contemporary productive tools. Nevertheless, the main problem lies in the fact that the international relations demand the creation of global financial markets which, in their turn, interfere with the independent countries and impose their own rules on public and economic organizations. This chain logically leads to the distortion of local economy.
The global financial crisis can be also considered as a negative outcome of the globalization process. Indeed, this process can be effective in case of following the rules necessary for controlling international economic exchange. Furthermore, multinational organizations tend to influence the economy, ecology, and culture of countries. They also dare to invade the political situation without any limitation for control (Kochler 2000, 38).
Conclusion
Particularly addressing the problems connected with commercial paper market in the United States, the globalization negatively influence the economic security for the depositors since the policy of the international banks is more oriented on the analysis of global operations applied to the deposits. Therefore, the main shortcoming of the international relations consists in insufficient awareness of the problems within particular countries leading to misunderstanding and disorganization. Those people who carry out large-scale operations are incapable to refer to the regional problems and to tackle them properly. More importantly, the consideration of global process excludes the consideration of regional ones.
Reference List
Blumberg, A. (2008a). Another Frightening Show about the Economy. This American Life from WBEZ. US: Public Radio International. Web.
Blumberg, A. (2008b). The Giant Pool of Money. This American Life from WBEZ. US: Public Radio International. Web.
Gordon, M. T., Meininger, M.-C., and Chen, W. (2004). Windows on China. The Netherlands: IOS Press.
Kochler, H. (2000). Globality versus democracy?: the changing nature of international relations in the era of globalization.
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