" (2007, p. 46) Guay writes that companies that are producers for civilian and military markets "are susceptible to increased global competition on the civilian side, even as the military side of their business may be fairly protected." (2007, p. 46) These firms may be forced to restructure which means restructuring as well as "selling divisions, reducing workforces, or ultimately going out of business - which could seriously affect the defense industrial base." (Guay, 2007, p. 46)
VI. GLOBALIZATION, FREE TRADE and NATIONAL SECURITY (JUSTER, 2001)
Juster (2004) relates that while free trade is important and "the salience of economic integration as a primary component of globalization...globalization involves much more than an increase in economic activities throughout the world. Globalization also involves the integration - or, at times, the collision - of political, social, and cultural activities and values." (p.1) Economic risks at the micro-level includes "inevitable short-term dislocations, as resources and capital move across open borders to seek out comparative advantages, such as lower labor or raw material costs." (Juster, 2004, p.1) at the macro level, "markets are increasingly volatile due to large amounts of cross-border investment and the ease with which capital can be injected into and withdrawn from different markets." (Juster, 2004, p.1) as noted by Juster, " a downturn in one financial market can have almost immediate repercussions around the world as a result of the interconnectedness and interdependence of financial markets arising from globalization." (Juster, 2004, p.1)
Globalization has resulted in markets becoming "increasingly volatile due to large amounts of cross-border investment and the ease with which capital can be injected into and withdrawn from different markets." (Juster, 2004, p.1) Juster relates that export controls that are effective in nature have the potential to bring about a reduction in the chance that an act of terrorism will "disrupt out critical infrastructures, deflate our consumer confidence, and throw our economy into a tailspin. Effective export controls also help ensure that markets are not destabilized by regional arms races or by the proliferation of weapons of mass destruction." (Juster, 2004, p.1)
Disruption of the infrastructures within the United States makes a requirement of risk management relating to service disruption. It is related that due to the dependence of shared information systems and networks, "the very information systems and networks that facilitate commerce also leave us vulnerable to a new type of threat - that of cyber attacks. And the interconnected nature of our infrastructure sectors significantly magnifies the consequences of a service disruption. Today, disturbances originating locally or in one sector are more likely than ever before to cascade regionally or nationally and affect multiple sectors of the economy. For example, a significant electrical or communications problem in one part of the country could adversely affect our banking and finance system, our air traffic control system, or even our oil and gas distribution system." (Juster, 2004, p.1) Juster summarizes by stating that the result of globalization is that the "economic integration and national security are more intertwined than ever. No longer is national security narrowly limited to national defense and military preparedness. Our conception of national security must also be concerned with securing the international conditions necessary for preserving and enhancing free trade and U.S. economic prosperity." (Juster, 2004, p.1)
Guay relates that in effect globalization as "strengthened the hand of defense companies at the expense of national governments. With more opportunities to expand their international presence, governments, at times, are being required to make concessions that would have been unheard of even a decade ago." (Guay, 2007, p. 63) Recommendations stated by Guay include those, which are described as "multilayered, with different roles for the private sector and the various branches, departments and agencies of the federal government and include those as follows:
1) Monitor international production patterns of leading U.S. defense industrial companies; (2) Make the approval process for foreign acquisitions more transparent;
3) Take a proactive stance in terms of investment in the United States by foreign defense companies;
4) Give preference to foreign companies with U.S.- based production when awarding contracts;
5) Be judicious in restricting technology transfer;
6) Diversify into nondefense sectors;
7) Improve math and science education;
8) Rebalance security concerns with economic competitiveness in areas of scientific research;
9) Ease restrictions on foreign high-skilled workers; and 10) Work with global institutions to harness the benefits of globalization. (Guay, 2007, p. 69-71)
DISCUSSION
This research study has sought to answer the question of whether U.S. security has been enhanced or if U.S. security has declined both economically and militarily due to the effects of globalization. As noted in this study, the Department of Defense (DOD) defines globalization as "the integration of political, economic and cultural activities of geographically and/or nationally separated peoples..." Furthermore, globalization cannot...
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