Understanding Global Economy and Globalization

Study Notes

Globalization encompasses increased worldwide economic integration, creating interdependencies among nations.
Economic globalization extends beyond internationalization, emphasizing integrated economic activities and the establishment of institutions for global market facilitation.

Driven by heightened cross-border trade in goods and services, economic globalization is influenced by advancements in transportation and communication.
Neoliberal principles promote market-driven activities with minimal government intervention, impacting global economic policies.
Developed countries are pivotal in global industrial restructuring, while historical precedents include intercontinental trade routes of empires such as the Roman Empire and ancient Asian trade.

Non-state actors like the IMF, World Bank, and OECD champion neoliberal policies and facilitate international trade discussions.
Regional organizations (e.g., ASEAN, NAFTA) focus on enhancing trade cooperation; multinational companies (MNCs) are significant players in economic globalization.
Central banks lead economic developments, while global civil society and Transnational Advocacy Networks (TAN) push for policy changes and alternative approaches.

Comprises 183 member countries, aiming to promote international monetary cooperation, economic growth, and exchange stability.
Provides short-term financial assistance to countries for balance of payments adjustments.

These institutions include development banks like the World Bank and monetary authorities such as the IMF.
They offer loans for large-scale projects under specific conditions to stimulate economic growth.

Enterprises that engage in cross-border activities, enhancing value in multiple countries across sectors like manufacturing and services.

Advisory groups of nations that address current economic and political challenges, influencing national legislative regulations.

Composed of individuals and groups impacted by globalization, advocating for alternatives and reforms within the global economy.
Represents movements that seek to propose new world order frameworks.

Immanuel Wallerstein's theory categorizes the world economy into core states, peripheral areas, and semi-peripherals based on economic power and resource distribution.
Peripheral countries are typically less developed, providing raw materials and labor for core economies, which dominate trade and wealth generation.
Semi-peripheral nations possess some economic power but rely on core states for technology and investment.

Wealthy, developed nations controlling trade and significantly influencing global economics.
Generate high profits through the design and sale of advanced products, benefiting from rich research and development sectors.

The modern world system illustrates the unequal distribution of wealth and resources, forming a hierarchical structure among nations, facilitated by modern transportation and communication advancements.