Economic Globalization CSB PDF

Introduction Economic Globalization is one of the dimensions of globalization. It is vital, therefore, to comprehend the concepts underlying the same. However, dealing with the concepts will not be sufficient. Hence, we shall give emphasis on what we really see in the real world of economic global...

Introduction Economic Globalization is one of the dimensions of globalization. It is vital, therefore, to comprehend the concepts underlying the same. However, dealing with the concepts will not be sufficient. Hence, we shall give emphasis on what we really see in the real world of economic globalization and how it affects the lives of people. What is Economic Globalization? a historical process, the result of human innovation and technological progress. It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. The term sometimes also refers to the movement of people (labor) and knowledge (technology) across international borders. (IMF, 2008) Economic Globalization Pertains to the “increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium” (Shangquan, 2000 ). Dimensions of Economic globalization 1. the globalization of trade of goods and services; 2. the globalization of financial and capital markets; Dimensions of Economic globalization 3. the globalization of technology and communication; and 4. the globalization of production.  Globalization of goods refers to the worldwide movement of goods from and to different directions. Globalization of services has been intensified because of the development in information and communication technology  Globalizationof financial and capital markets refers to the movements of currencies through direct and portfolio investments making the world market the playing ground of the Transnational Corporations. Globalization of technology and communication means the availability of technologies all over the world.  globalizationof production refers to the system wherein the various parts of a certain product are manufactured in different parts of the world taking into consideration the principle of competitive advantage. Difference between internationalization and economic globalization Internationalization Economic Globalization theextension of ‘functional economic activities integration between of nation states internationally dispersed activities’ across borders Dicken (2004: 12) Neoliberalism The Ideology Behind Economic Globalization neoliberalism ForDavid Harvey, neoliberalism is "a combination of classical liberalism's commitment to individual liberty with neoclassical economics devoted to the free market and opposed to state intervention in that market." (Ritzer 2010: 110) Core concepts of neoliberalism 1. "Great faith is placed in the free market and its rationality”. 2. "Related to the belief in the free market is a parallel belief in free trade.” 3. "There is a strong and generalized belief in limited government 4. "The neo-liberal state is very interested in privatizing various sectors” Institutions tasked to see to it that the philosophy behind globalization is realized World Trade Organization TheWorld Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible (www.wto.org). International Monetary Fund The International Monetary Fund (IMF) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world (www.imf.org). World bank The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development (https://www.worldbank.org/).