Economic Globalization

• Economic globalization, the expansion of national economies and the global market, is propelled by modern tech and institutional frameworks.
• These frameworks facilitate quicker and easier flow of products and capital.

Global Economy

• The global economy signifies the interconnectedness of various countries' economies.
• It spans from extraction and production to distribution, consumption, and disposal of goods and services.

International Financial Institutions

• These institutions support a country's economic growth through financial aid like loans and technical assistance.
• The aid is provided to governments and private sectors.

International Monetary Fund (IMF)

• The IMF is an organization consisting of 183 member countries.
• It promotes worldwide monetary cooperation and exchange rate stability.
• It also fosters economic growth and high employment.
• The IMF gives short-term financial assistance to countries to ease balance of payments adjustments.

Global Civil Society

• It consists of non-government institutions that operate across geographical borders.
• It organizes and mobilizes for a common issue or cause.

Global Corporation

• This is an enterprise involved in activities that add value—manufacturing, extraction, services, marketing—in more than one country.

World System theory

• This theory acknowledges that social and economic change isn't just internal to a country.
• It is affected by its interaction with external institutions.
• It focuses on world-systems.

Economic Integration

• This is a process of combining or increasing the interconnectivity of national economies.
• It extends to regional or global economies.

Economic Globalization

• Economic globalization involves the integration of functions and processes of economic activities.
• It requires creating institutions for market integration and globalization, going beyond just international consumer activity.

Drivers of Economic Globalization

• Economic globalization is driven by the growing scale of cross-border trade in commodities and services.

Global Economic Integration

• Global Economic Integration is significant to economic globalization.
• This means separate production operations are functionally related, forming a unified product or service.
• This necessitates skillful management of economic operations globally.
• Innovations in logistics, communication, transport, and supportive policies enable this.
• Neoliberal principles and market-driven activities govern this, with less governmental control

History of Economic Integration

• Global economic integration isn't new.
• Voyages by explorers in empires like the Roman Empire were crucial for intercontinental trade and precursors.
• Early trades in Asia also served as first forms of expansion and later integration.
• Globalization has been ongoing since Homo sapiens migrated from Africa.
• Earlier explorations focused on valuable commodities, and the difference now is the extent and the role of the private sector

Actors of Economic Globalization

• Globalization is not only driven by authority and actors.
• Non-state actors, such as international economic organizations, the private sector, central banks, and civil society helps drive economic globalization.

International Economic Organizations

• International economic organizations like the IMF, World Bank, and OECD are critical in pushing for neoliberal policies in countries.

Regional Organizations

• Regional organizations like ASEAN and NAFTA promote regional agreements to facilitate trade and exchange.
• They facilitate knowledge, human resources, and regional cooperation.

Advisory Organizations

• The Group of 8 (G8) and G20 discuss current economic and political problems.
• They transfer forum ideas into national legislative regulations.

Multinational Companies

• Multinational companies, numbering 44,000 in 1996 and 88,000 in 2006, are main drivers of economic globalization.
• Forerunners of modern MNCs were trade companies such as the Dutch and British East India companies.
• MNCs emerged during World War II due to increased US industrial production.

Central Banks

• Central banks are prime movers in the world economy, leading economic development.
• Some consider central bank governors more influential than politicians in national economies.

Global Civil Society

• Global civil society, made up of individuals affected by globalization, protests and seeks alternatives.
• They form a basis for a new world order, including Transnational Advocacy Networks that promote causes and policy changes.

Modern world system

• The modern world system is split into the core, semi-periphery, and periphery.
• The core is the center of economic activities with living populations, economic institutions, for services.
• The periphery has raw materials and productions.
• The semi-periphery distributes raw materials by processing them for the core.

Economic globalization involves the integration of national economies through technology and institutional frameworks. These frameworks enable the flow of goods and capital. International financial institutions, like the IMF, offer financial aid to governments and private sectors.