The modern world could be considered a unique globalized entity that functions following the specific regulations. Significant alterations in the modes of lives, along with the high speed of the technological progress, resulted in the creation of specific societies involved in the international discourse. Thus, the appearance of the new means of transport and communication eliminated geographical borders and introduced new opportunities for cooperation.
Under these conditions, international trade entered the phase of its rapid boost and became one of the main factors that determine the evolution of society. The great importance of this phenomenon preconditioned increased attention devoted to the aspects that might either improve or deteriorate its state and precondition the appearance of new opportunities to obtain increased revenues. Otherwise, global trade is dependent on states involved in the discourse and the main actors that represent these states.
In this regard, cultural, economic, financial, and political forces become extremely important for the outcomes as they determine the patterns that are used by agents and the choice of approaches to cooperate. Besides, the improved comprehending of these forces is crucial for the further development of the global marketplace and enhanced quality of life. For this reason, the paper is devoted to the comprehensive investigation of cultural, economic, financial, and political forces that impact the USA and Russian Federation and the way they cooperate at the international level.
Background
Today we could observe the unique situation in the global policy. The majority of states engage in international discourse to obtain benefits and attain the revitalization of their economies. Today, a state could not exist isolated and avoid contacts at the international level because of the unique peculiarities of the modern environment and globalization trends that affect all agents across the world. At the same time, the countries are characterized by different relations, and some conflicts might be observed.
For this reason, the policy becomes an important factor that should be considered in terms of global trade and organizing cooperation between different states. Today, we could observe that trade sanctions become the main tools in the international policy that are used to make a certain actor follow the prescribed course or to bring pressure on a state (McKenzie, 2014).
One should also realize the fact that global trade is closely connected to global capital, which is the powerful remedy of modern diplomacy. Finally, the cultural aspect of the global trade also plays a great role in the process as the divergences in mentalities might create the basis for the conflict or, on the contrary, result in improved comprehending between parties. In such a way, all these forces affect the global marketplace significantly and could either stimulate or slow down the speed of its evolution.
Globalization
The forces mentioned above should be considered in terms of the unique globalized society that we could observe nowadays. The tendency towards the elimination of borders results in the appearance of numerous patterns aimed at the improved cooperation between representatives of different cultures and mentalities. Conflicts could not be avoided because of the diversity of perspectives and approaches to organization and observation of different rules. In this regard, globalization becomes an important factor that affects global trade and should be considered in case an actor engages in international cooperation.
However, globalization might also hurt the organization of the global trade because of the necessity to keep in mind an increased number of peculiarities and unique features peculiar to different agents (Borg, 2016). Finally, globalization preconditions the appearance of new alliances that are formed resting on like-mindedness and similar goals. That is why international organizations like WTO might impact the global marketplace greatly. Under these conditions, globalization, along with cultural, economic, financial, and political factors, becomes an important aspect that determines the vectors of states evolution and makes them accept certain measures to promote their evolution.
International Trade
According to the WTO statistics, about 4,6 trillion dollars could be obtained due to the participation in international trade activities (WTO, 2016). Moreover, despite some stagnation that was admitted in the years of the financial crisis, the tendency towards the further increase in revenues and the development of international trade could be observed (WTO, 2016). Developing economies start to become more and more powerful, and their share in the world trade comes up to those of the developed ones (WTO, 2016).
The combination of these factors results in the increased importance of the sphere, which becomes the crucial aspect that affects the world greatly. For instance, one of the main goals of the modern policy is the entry to the new global markets that could guarantee surplus profits for states and stimulate their development. For this reason, international trade is a key to the increased power and ability to impact the global policy. The consideration of all factors that impact the given aspect becomes the part of the national policy that is created to guarantee prosperity to all citizens and trigger the boost of the economy.
The USA
The USA could be considered one of the main actors in the global marketplace. Since the first stages of its history, the region had been the area of intense international trade as numerous countries considered America the sphere of their interests because of its promising position. Today, the given pattern is preserved. The state has one of the most powerful economies that benefit from international trade greatly. For instance, about 41 million Americans depend on trade (“The benefits of international trade,” n.d.).
It means that a significant percentage of the population turns out to be involved in the process and obtain stable revenues. Furthermore, the USA could be considered a state that sets the pace of international trade by introducing rules and regulations.
The great economic potential of the country resulted in its acknowledgment as one of the most desired partners. For this reason, the USA could explore its leading state to attain an advantageous position in different regions and foster its economic relations with the most promising commercial partners. At the same time, the state also experiences the impact of the forces mentioned above as they set the background for the improved cooperation between agents. In this regard, the investigation of the US peculiarities of the global trade will promote the improved comprehending of the nature of forces that impact world trade at the moment.
Cultural Forces
As for the cultural forces that impact the USA and its position at the international level, several factors should be mentioned. First of all, due to the unique ethnic composition and peculiarities of its rise, the state has a great experience in cooperating with the representatives of different cultures and ethnic groups. At the moment, it is characterized by the unique diversity that contributes to its improved functioning at the international level.
One should realize the fact that cooperation with international partners presupposes the ability to consider their peculiarities and create a pattern that will not ruffle their feelings. On the contrary, these unique aspects should be used to attain benefits. The USA manages to accomplish this task. According to modern statistics, the USA has more than 30 leading and hundreds of less significant trade partners across the world (“The dominance of the American market,” n.d.). It means that the cultural factor remains important for the improved cooperation at the international level. In the majority of cases, the USA manages to avoid conflicts and engage in beneficial cooperation that results in the acquisition of multi-billion revenues and the empowerment of the US economy.
Economic Forces
The 2008 financial crisis was a hard challenge for the USA and resulted in the stagnation of its economy and a decrease in the revenues obtained from global operations (Halsey, 2013). Altogether, the appearance of numerous problems in economies of other countries altered the traditional patterns that were explored by countries and contributed to the appearance of new problems in the global marketplace (Hasset & Glassman, 2003).
Thus, the revitalization of the economy and elimination of the production slump’s resulted in the further empowerment of the US role at the international level and its leading positions. The mitigation of the negative impact of the 2008 financial crisis stimulated the economic growth and returned commodity circulation to the traditionally high levels. Besides, the restoration of the US economy is an important process as it impacts international trade greatly. Being an important actor in the global marketplace, the USA affects its partners and also stimulates their economies to produce goods that could be exported. In this regard, the state depends on the economic factor greatly; however, at the same time, it also preconditions the way this factor evolves and impacts other states.
Financial Forces
Another aspect that cultivates the rapid growth of the US economy and the preservation of its leading position is its currency. Today, the dollar is used by all states across the world to close a transaction or make a certain deal. Being the world currency, the dollar is recognized as one of the most reliable and strongest values that could be used by different partners to avoid misunderstandings and attain improved cooperation (Helpman, 2011).
For this reason, the global marketplace becomes dependent on the US financial system as there is no alternative to the dollar anymore. Great financial flows concentrated in the USA help to support its economy and industry. Moreover, foreign investments could also be considered an important factor that cultivates US financial power (Plouffe & van der Sterren, 2016).
In such a way, the financial aspect is one of the most important forces impacting the state’s current position at the international level and making it one of the most important strategic partners that affect the evolution of the marketplace greatly. Analyzing the current tendencies in the market and financial flows, the preservation of the dollar’s powerful position could be stated (“The dominance of the American market,” n.d.). There is still no alternative to this currency, and it means that the USA will remain one of the leading actors.
Political Forces
As for the political factors that might impact the state’s position in the marketplace, these depend on the current international situation and relations between states that are involved in the international discourse. As for the USA, it is one the states the determines the global policy and can affect the decision-making of its partners and other states that are engaged in the international discourse. The USA is a member of WTO and could impact its decisions directly (Shaikh, Karodia, & Soni, 2016). However, it is not the only organization that could determine the way international trade evolves. The fact is that today’s economy and global trade come along with policy, and these factors could hardly be distinguished.
For this reason, trade sanctions are often used as a powerful tool in international policy. The latest events could be used as evidence of this statement. The crisis in international relations and confrontation with Russia also resulted in the deterioration of trade relations. The USA and countries of the EU implemented trade sanctions to limit Russia’s opportunities for international trade and deprive it of the potential partners. At the same time, the USA preserved its leading positions. In general, the given practice is often used by the state because it uses its powerful economy and great authority at the international level to impact domestic and international policies. That is why when analyzing the US role in the global marketplace, one should remember the fact that it is a powerful remedy that could help to preserve the US leading role and empower its position (Weaver, 2011).
Russia
Analyzing the factors mentioned above that impact a state at the international level, it is crucial to keep in mind the fact that different countries experience this influence in various ways. To understand the aspects that result in the appearance of these divergences, Russia, as another great state acting at the international level, should be analyzed. It is the biggest state with unique potential. There are numerous deposits of natural resources as well as industrial facilities that could help the state to attain success and become a leader in the global marketplace. However, the country could also be characterized by numerous problems in the sphere of economy.
Russia is the main successor of the USSR, which means that it tries to create a competitive environment that will be able to stimulate the growth of the private sector in terms of market relations (Makeeva & Chaplygina, 2008).
However, despite numerous problems, the state remains one of the most powerful actors at the international level as it is one of the main exporters of natural gas, oil, minerals, and other important resources that attract the attention of states all over the world (ING, n.d.). For this reason, it remains a promising partner that should be given great attention.
Cultural Forces
As for the cultural forces impacting Russia’s performance at the international level, the state still experiences the great impact of its socialist past. The country tries to preserve its past cultural and trade relations and cooperates with partners that were also involved in trade with the USSR. In this regard, the cultural bonds peculiar to the post-Soviet space contribute to the development of trade relations within this area. Belarus, Kazakhstan, etc. remain the most loyal trade partners, and cultural relations between these states are cultivated. At the same time, Russia also tries to find new partners and shift its priorities towards the cooperation with the Western countries that could provide increased revenues and have great demand for the goods and products produced in the state (“Vector of Russia’s development in global trade,” 2016).
The establishment of new cultural relations is a long-term process that demands numerous efforts. However, they are crucial in case the state wants to become a leader in global trade relations. At the moment, the majority of Western states accept the unique role Russia plays in the global marketplace; however, they might not be ready to engage in the improved cooperation because of the divergence in mentalities and doctrines that are explored by these agents.
Economic Forces
Another factor that affects Russia’s current performance at the international level is the state of its economy. It is the sixth-largest economy in the world and twelfth-largest at market exchange rates (ING, n.d.). Moreover, there is a tendency towards its further growth because of the great potential of the state, numerous resources, and diverse industries. At the same time, market reforms peculiar to the 1990s contributed to the reconsideration of the main patterns used in the economy and initiated the privatization of numerous industries. However, along with the usage of new patterns, problems peculiar to the exploration of innovative approaches appeared.
For this reason, Russia’s attractiveness for foreign investors remains doubtful (ING, n.d.). Yet, there are numerous attempts to alter the situation and empower its leading position in the global marketplace. Besides, the economic factor remains one of the most important aspects that, at the moment, affects Russia’s performance. However, according to the latest investigations, the state’s role in global trade will gradually rise because of the revitalization of its economy. The Russian Federation starts to implement numerous innovations to its industrial sector and tends to reconsider the majority of the approaches that nowadays could be considered inefficient. For this reason, the economy affects Russia’s position in the global trade and contributes to its gradual improvement.
Financial Forces
If to compare the USA and Russia’s financial aspects, it becomes obvious that the position of the first one could be considered more advantageous. At the moment, the dollar is the world currency that holds leading positions and has no alternatives. At the same time, the ruble is not stable. Its currency rate depends on the dollar. The recent alterations of its rate had a great negative impact on the development of the economy and slowed down the speed of its development (“Russia. Exports, imports, and trade partners,” n.d.).
For this reason, the government introduced a set of measures to stabilize its position and avoid further oscillations. Moreover, the instability in the banking sector and the tendency towards the usage of corrupted patterns decrease the state’s attractiveness for foreign investors. In its turn, it decreases the number of financial operations and serves as the limiting factor for the empowerment of the international position. In this regard, financial factor remains a complex issue for the Russian Federation as its effect on the economy is far from desirable. The state also uses the dollar for the majority of financial operations as its main partners act within the dollar zone and prefer to make transactions using this very currency.
Political Forces
Finally, as for the political factor, Russia also uses its powerful international position as the tool to impact its partners and rivals and achieve a certain goal. The given tradition comes from the Soviet past as the USSR used to be the most powerful state that provided financial support to its allies. Today, Russia remains the state that determines the world policy. That is why it tries to cooperate with potential partners and provide them with numerous benefits. At the same time, the recent conflict with Turkey demonstrated that trade sanctions used by Russia turned out to be very painful for the economy of states that are focused on the cooperation with it (ING, n.d.).
Turkey experienced significant problems in the sphere of tourism and export and reconsidered its policy towards Russia (“Russia. Exports, imports, and trade partners,” n.d.). It proves that Russia, like the USA, might explore political factors to improve its current position and protect its interests in the global marketplace. At the same time, there are numerous sanctions applied to Russia because of the incongruity of the perspectives on the Ukrainian conflict. These sanctions have a less severe impact than it was expected; however, they still limit the Russian economy and prevent the state from its advance at the international stage (Grigoryan & Korchmarek, 2015).
The USA-Russia Cooperation
Nevertheless, both Russia and the USA recognize their unique strategic importance, and the impact one has on another. As many years ago, today, the relations between these states determine the way the world will evolve, and the vector of international cooperation. Besides, the economic relations between these states result in the appearance of numerous workplaces and the growth of global trade. That is why trade is cultivated. During the last several years, the commodity circulation between these states has increased by 24,4% and comprised about $434,8 million (WTO, 2016). The statistics prove the unique importance of cooperation and reveals the promising character of these relations. Even though trade sanctions altered the strategy used by the states, the commodity circulation remains high.
Perspectives
The great significance of the relations also results in numerous attempts to cultivate their further evolution and guarantee stable incomes. The deterioration of the USA-Russia relations impacts the sphere of trade. As stated above, being super-states that try to preserve their dominance in the world, both the USA and Russia use trade relations as the lever of influence to make a partner follow a certain course. In this regard, the preservation of the current trade policy could be predicted. Even though there are some signs of gradual improvement, the relations could be considered tense as the policy and cultural differences are the main factors that contribute to the divergence in perspectives on cooperation and partnership.
Impact on the Global Trade
However, USA-Russia relations remain one of the main factors that determine global trade. The fact is that the diverse interests of these states help other countries to develop their economies and participate in the international discourse. Moreover, the USA and Russia precondition the existence of the high or low demand for a certain product and, in such a way, determine the further evolution of the marketplace, impact pricing policies, etc. (Efstathopoulos, 2015). The prices for oil could be considered a good example of their impact as they depend on the policies of these states greatly. For this reason, it is crucial to trace alterations in the international trade patterns explored by these states.
Alteration in the Main Forces
Furthermore, the forces mentioned above (cultural, economic, political, and financial ones) also experience certain alterations. The current business environment could be considered rather complex as the relations between main actors imply numerous hidden inclinations and aspects that should be considered to attain success. Moreover, globalization patterns peculiar to the society result in the appearance of a certain universal culture that encompasses the most notable aspects of other ones and contributes to the improved cooperation at the international level (Oliver, 2015).
Considering these processes, it is possible to predict the further evolution of the main forces that impact the global marketplace and precondition the choice of the patterns that are used by states to attain success. For instance, today, we could observe the domination of the political aspect of international relations (“Political and legal factors that impact international trade,” n.d.). Trying to empower their leading positions, states act not only to attain revenues but to impact its partners and their policies. In this regard, it should be given great attention when engaging in global discourse.
Conclusion
Altogether, the modern world could be considered a great globalized entity that is characterized by the improved cooperation between states in different regions. The high speed of globalization contributed to the blistering rise of global trade and the increased significance of this issue. However, such factors like the culture, economy, policy, or finances precondition the evolution of the global marketplace greatly. That is why the powerful states like Russia and the USA also take into account these factors engaging the international discourse and trying to obtain an advantageous position.
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