How The Globalization Has Been Influenced Politics Essay

How The Globalization Has Been Influenced Politics EssayQuestion What factors extradite regulate the processes of inter disciplineisation? Discuss to what consequence the beingness economy is becoming less or more globalised as a consequence of the global recession started in 2008?draw the views of radicals, sceptics and pragmatics regarding the factors promotingthe existence of sparing globalisation as a bare-assed phenomenonDIFFERENT FROM internationalisation, westernization, liberalism or cultural convergence.It should further discussto what extent such factors have been influenced by the frugal crisisAND what be the consequences for the globalising world economy.Key authors HIRST THOMPSON,sCHOLTE (BOTH IN THE READING PACKAGE.)OHMAEDICKENIntroduction In the last decade, globalization has been much all everywhere the news. But despite its prominence, globalization is viewed as a highly complex process difficult to define.Essay divided in 3 parts Introduction 250 words The factors that have shaped the stinting globalization 1000 wordsThe globalization debate 900 wordsHow the globalization has been influenced by the frugal crisis and the consequences on the world economy 1000 words endpoint 150 wordsIndeed, it a topic that is discussed by many authors who strongly disagree about its significance.Impossible to define.I will present the nature and the significance of these processes. (prod, pay, handicraft)Globalization is transforming the ways in which nations interactin the last few decades international trade andproduction has become increasingly globalised and corporate activity has modify and multipliedNot only globalization is very real, but it consequences can be felt everywhere.The global market place is more developed than in the 60s and 70s and is indifferent to national borders.Nations have lost most of their sovereignty and politicians have lost most of their capability to influence events.The era of nation state is overTHE FACTORS THAT HAVE SHAPED THE PROCESSES OF ECONOMIC GLOBALIZATIONAccording to Castells, economic globalization can be mainly conceived as trey different sets of factors that have shaped the processes of globalization, encompassing the changes that took place at a global level over the last few decades the globalization of production, the globalization of finance and the globalization of trade (Castells, 2000).The globalization of productionThe globalization of production encompasses the changes that took place in a global level regarding the ways in which production of goods and services is organized and involve three dynamics a massive increase of Foreign Direct Investment, an increased role of transnational corporations in the world economy and finally a harvest-feast of long distance production network (Prasad, 2006).The massive increase of FDIAccording to Razin and Sadka, the foreign direct enthronization (FDI) can be defined as an investment involving a long-term relationship and re flecting a lasting interest and control of a resident entity in the source country (foreign direct investment or p bent firm) in the host country. (Razin and Sadka, 2007). As menti matchlessd by Castells, since 1960, the FDI was more and more concentrated in industrialize countries with its origins in a small group of industrialized countries and its destinations in the same group. However, as a real result of the economic globalization, the countries of the Third World are becoming important destinations. For example, transnational corporations investments in vicissitude economies are growing significantly and according to the UNCTAD, China replaced the United States as the worlds largest destination for FDI in 2003 (UNCTAD, 2005). Therefore, it is possible to argue that there is globalization of production because the economic globalization is reorienting the destinations of FDI.The role of transnational corporations in the world economyTransnational corporations like Airbus, S amsung, Nike or Apple are companies who have their headquarters in one country (mainly concentrated in industrialized countries) and a number of subsidiaries in more than one foreign country. They constitute the most important vehicle for FDI, particular(a) sometimes the gross domestic products of some national economies. Their role in the global economy is more and more important as their number is significantly increasing. Also, some transnational corporations located in some countries of the Third World tend to become significant vehicles for FDI (Held Mc Grew, 2003). Consequently, the internationalization and the growing importance of these international corporations are rapidly shaping the processes of economic globalization.The growth of long distance production networkAccording to Gereffi and Korzeniewicz, most of the large transnational corporations tend to pervade their production networks internationally which represents a fundamental difference from earlier, when the production processes were mainly organized within national frontiers (Gereffi and Korzeniewicz, 1994). Those new global commodity custody corroborate evolving through time and involve market-based networks of global scope organized by the multinational corporations through relying upon contracting and sub-contracting of production processes worldwide (Prasad, 2006).According to Gereffi, there are two types of global world commodity chains the producer-driven chain in which large manufacturing multinational corporations take a leadership role by organizing the chains and the buyer-driven chains in which the leadership role is taken by the global retailers and marketers (Gereffi, 2002).Consequently, the global production of goods and services gradually occurs through broadly- dispersed network activities that have shaped something similar to a global web of productive activities.Hence, these three dynamics that constitute the globalization of production have influenced the world th e economy plot determining the processes of economic globalization. However, as previously mentioned, economic globalization also involves globalization of finance.The globalization of financeEconomic globalization has been accompanied by famed fluctuations in the nature of the global financial organization. Indeed, the financial design that has been established by the Bretton Woods Agreement founded a system of fixed exchange range across national currencies (Bordo and Eichengreen, 1993). Though, after the collapse of this system in the 1970s, the global financial system has progressively become globalized and presented a rising tendency toward global integration of financial markets and dome groundbreaking financial instruments.Therefore, nowadays businesses increasingly work in a world of globally integrated capital markets with developments in a particular part of the planet rapidly spreading their effects on a global level.Moreover, the globalization of finance has resulted in a strike explosion of currency trading isolated from transnational trade.Therefore, it is possible to understand that the changes concerning the global production and finance also implied a globalization of trade.The globalization of tradeThe increase of international trade in every economic activities worldwide.International trade has grown significantly in relation to national income. Compared to the era of the rapid trade growth of the 1990s, the export levels today are much bigger for the states part of the Organisation for Economic Co-operation and Development (OECD) because the trading walls have fallen across the world. Therefore, global markets have arisen for many goods and services.Also, in terms of value, trade in manufactured products accounts for about 75 per cent of the global trade when trade in services represent only 20 per cent (Castells, 2000).Changes in geographical patterns of international tradeAs the manufactured products represent such a broad part of t he international trade, it is without a doubt that industrialized economies lead the international trade. However, as a result of the globalization of production and finance, the international trade tends to be increasingly geographically diversified. Indeed, as the exports betwixt industrialized countries have significantly dropped, the exports between the Third World countries have increased which is changing the geographical patterns of international trade (Nigel, 2012)The emergence of large regional trade groups as EU, NAFTA etc.The globalization of trade introduced the development of regional trade group as the European Union (EU), Association of south East Asia Nations (ASEAN), the North American Free Trade Agreement (NAFTA) and Mercosur designed to give extra impulse to trade between member countries (Frankel, 1997).The graduation section of this paper has explained the factors that have shaped the processes of economic globalization. But globalization and its consequences constitute the root of many controversies and debates that will be discussed in the second part of this paper.THE GLOBALIZATION DEBATEAccording to Giddens, when it comes to the question of globalization, it is possible to distinguish three schools of thought the hyperglobalizers, the sceptics and the trans brassalists. Those three schools attempted to explain and understand the fresh concept that is globalization, and more precisely, economic globalization.The hyperglobalizersAccording to Ohmae, globalization could be defined as a new era of merciful history in which traditional nation-states have become unnatural, even impossible business units in a global economy (Ohmae, 1995). Ohmaes of globalization privileges its economic logic while the other showtime of this school of thought, the neoliberals, attains the globalization as the emergence of a single global market. Therefore, the hyperglobalizers think that the economic globalization will bring the denationalisation of econo mies through the formation of global networks of production, trade and finance that have been discussed in the first part of this paper.According to Reich, national governments are simple transitional institutions between global, regional and local anaesthetic instruments of governance (Reich, 1991). As mentioned by Strange the virtual forces of world market are more important than national governments and their authority is decreasing (Strange, 1996).Within the hyperglobalist movement, it exists a divergence between the neoliberals and the neo-Marxists as the neoliberals see the individual autonomy as a triumph when the neo-Marxist see the oppressive global capitalism as a triumph (Greider, 1997).However, those two variants of the movement agree on the economic globalization as a new phenomenon creating winners and losers in the global economy. They see the North-South division as an anachronism it has been replaced by a division of labour.Moreover, the hyperglobalizers see the Na tion State coming to an end as they consider the globalization as an indication of the first global civilization and a new wold order with an emergence of institutions of global governance (Albrow, 1996). Indeed, as argued by Ohmae, the authority of the nation state is challenged as the national economy is more and more of a site of global flows. Also, the national governments are not capable to control what happens in their borders or to satisfy the demands of their citizens (Ohmae, 1995).As institutions of global governances are becoming more and more important, the sovereignty of nation states is eroded.In general terms, the hyperglobalizers perceive the globalization as a reconfiguration of the framework of human action (Albrow, 1996).The scepticsCompared to the hyperglobalizers, the sceptics see globalization as a myth or an ideology only relying on an economic conception. They think that globalization is primarily associated with a faultlessly integrated global market. Accordi ng to Hirst and Thompson, the extent of economic globalization is categorically exaggerated (Hirst and Thompson, 2002). The sceptics consider the influence of national governments on global economic activity really powerful and therefore perceive the hyperglobalizers view as politically nave. In their point of view, the only thing that is demonstrated is that the economic activity is experiencing an important regionalization with the emergence of the regional trade groups such as the EU, NAFTA etc. Indeed, according to Boyer and Drache, todays global economy is considerably less integrated than it was in the past (Boyer Drache, 1998).Sceptics are also against the idea of the end of the nation state. Also, it is possible to see different points of view within the sceptics some of them see national governments as the most important part of the internationalization considered as a US-initiated economic order who shaped an impulse for the liberalization of national economies.Some othe rs like Callinicos, see the increase of global trade and FDI as a new era of Westernization in which national governments are deeply concerned (Callinicos, 1994).However, they all believe that internationalization has been accompanied by the rising economic marginalization of Third World states.As argued by Held and McGrew, rather than the world becoming more interdependent, the sceptics seek to stop the myths which sustain the globalization thesis (Held McGrew, 1999)The transformationalistsJones Cycles of the economyStiglitz Adverse impact on developing countriesStiglitz, J (2002) Globalization and its Discontents (London, Penguin, 2002).Stiglitz , J ( 2007) Making Globalization Work The adjacent Steps to Global Justice, London, PenguinSaul Discusses the end of globalization a specific economic momentC) View of the TRANSFORMATIONALISTS regarding the economic globalization as a new phenomenonc) How is the economic globalization different from industrialization westernization l iberalism according to the TRANSFORMATIONALISTS. cultural convergenceAuthors Giddens Globalization is real and its consequences can be felt everywhereLevel of world trade today is much higher than it ever was before and involves a much wider range of goods and services.Biggest difference between before and now level of finance and cash flow. (exemple electronic money that exist as digits in computers the current economy has no parallels in earlier times transfer money in 1 click. Globalization is not only new but revolutionary.TransformationalistsFin de 1ere partie Giddens I dont believe that every the sceptics or the radicals have properly understood either what it is or its implications for us. + It is wrong to think of globalization as just concerning the big systems, like the world financial order. Globalization isnt only about what is out here, impertinent and far away from the individual..II) DISCUSSION ON GLOBALIZATION AND ECONOMIC CRISIShttps//vip2.uvm.edu/sseguino/p df/global_crisis.pdfHow the factors that have shaped the globalization have influenced the economic crisis.How did the globalization of production influence the economic crisisHow did the globalization of finance and trade influence the economic crisishttp//www.imf.org/external/pubs/ft/spn/2009/spn0904.pdfConsequences of the economic crisis on the globalising world economy.x