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globalization
multidimensional phenomenon creating economic, political, cultural, and even technological forms of connectivity
economic globalization
Expanding interdependence of world economies.
Shangquan (2000)
attributes this to the growing scale of cross-border trade commodities and services, flow of international capital, and wide and rapid spread of technology.
foreign direct investments (fdi)
the flow of international capital can be observed in _____________, a type of investment in which a company establishes a business in another country for production of goods or services and still takes part in the management of that business.
International Monetary Fund (IMF)
they defined economic globalization as a historical processes, the result of human innovation and technological processes.
It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders.
silk road
a network of trade routes that connected the East, particularly China, and the West
Benczes (2014)
identified 4 interconnected dimensions of economy
the globalization of trade of goods and services, the globalization of financial and capital markets,the globalization of technology and communication, and the globalization of production
4 interconnected dimensions of economy
World Trade Organization (WTO)
ensures that trade flows as smoothly, predictably, and freely as possible
World Trade Organization (WTO)
The first dimension of economic interconnectedness is demonstrated in the establishment of the ________
second
this dimension is evident in the liberalization of financial and capital market
third
this dimension emphasizes that various transactions and interactivities that transpire instantly due to the internet and communication technology
fourth
this dimension is best illustrated by the existence of multinational corporations (MNCs) and transnational corporations (TNCs)
Szentes (2003)
the most fitting definition of economic globalization
Szentes (2003)
it is a process making the world economy an "organic system" by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependence among them.
world economy is no longer controlled by the nation-states, but it must be seen from a global context
nation-state
some scholars believe that they still facilitate economic globalization but on different levels
Boyer and Drache (1996)
state that the role of nation-state as manager of the national economy is being redefined by globalization.
brodie (1996)
calls the government as the "midwives" of globalization
government polices and regulations
they either permit or deny the smooth connection among world economies
Trade War Between China and US
each government imposes high tariffs on goods and services because of this
global corporations
some experts believe that they facilitate economic globalization now
Ohmae (1995)
Argues that the nation-state has ceased to exist as the primary economic organization unit in the global market.
reich (1999)
posits that national products technologies corporations and industries become obsolete
Gereffi (2005)
such TNCs are the main driving force of economic globalization accounting for 2/3s od the world export
international monetary system (ims)
Refers to internationally agreed rules, conventions, and institutions for facilitating international trade, investments, and flow of capital among nation-states
global standard, bretton woods system, and european monetary system (ems)
3 global IMS
gold standard
functions as a fixed exchange rate regime, with gold as the only international reserve and participating countries determine the gold content of national currencies
bretton woods system
the US dollar was the only convertible currency
International Bank for Reconstruction and Development/World Bank
responsible for post-war reconstructions
European Economic and Monetary Union (EMU)
Institution establishing the euro as common currency
true
true or false
trade patterns must not be stagnant
Benczes (2014)
believes that economic globalization fosters universal economic growth and development.
true
true or false
economic globalization reduces poverty
false
true or false
globalization does not create mutual dependence between developing and developed countries
Wallerstien (2005)
claims that capitalism created the different levels of wages in the economic arena of world systems
