Economic Globalization and Global Trade

Global North and Global South

• The Global North includes the United States, Canada, Western Europe, and developed parts of Asia
• The Global South includes the Caribbean, Latin America, South America, Africa, and parts of Asia
• These distinctions relate largely to racial inequality, specifically between Black and White populations
• Whites are disproportionately in the dominant North, while Blacks are primarily in the South, although this is changing with South-to-North migration

The Global City and Globalization

• Globalization has deeply altered North-South relations in agriculture
• The rise of global agribusiness and factory farms has changed agricultural production relations between the North and South
• The South produces non-traditional products for export and becomes increasingly dependent on industrialized food exports from the North
• This leads to the replacement of staple diets and the displacement of local farmers
• Sassen's concept of global cities describes urban centers that exert control over the world's political economy
• Global cities are categorized based on the global reach of organizations found in them

Economic Globalization and Global Trade

• Economic globalization refers to the increasing interdependence of world economies due to cross-border trade, flow of international capital, and spread of technologies
• There are two types of economies associated with economic globalization: protectionism and trade liberalization
• Protectionism involves government intervention in foreign trade to encourage domestic production and discriminate against foreign competitors
• Trade liberalization involves the removal or reduction of restrictions on the free exchange of goods between nations
• Globalization has led to some countries gaining more in the global economy at the expense of others
• Secondary labor market jobs provide fewer benefits and include lower-skilled jobs and lower-level service sector jobs

Global Corporations

• Corporations are defined as organizations that exist as legal entities with liabilities separate from their members
• Corporations operate across national boundaries, and their future is tied to global economic developments
• International trade has created and been supported by international regulatory groups and transnational trade agreements

International Financial Institutions and Economic Organizations

• International regulatory groups and agreements regulate the flow of goods and services between countries
• These groups reduce tariffs and make customs procedures easier, facilitating international trade
• Market integration is an economic system that organizes production, consumption, and trade in society
• The economy can be divided into three sectors: primary (extracting raw materials), secondary (manufacturing), and tertiary (services)
• International Financial Institutions, such as the Bretton Woods System, aim to restructure the world economy and ensure global financial stability

Dependence Theory and Modern World System

• Dependence theory suggests that less developed countries primarily serve the interests of wealthier countries
• The Modern World System model by Immanuel Wallerstein describes high-income nations as the "core" of the world economy and low-income countries as the "periphery"
• The periphery remains economically dependent on the core in various ways, which tend to reinforce each other (also called neocolonialism)

Learn about economic globalization, its effects on world economies, and the two types of economies associated with it. Understand the concept of protectionism and its implications on global trade.