How The Globalization Has Been Influenced Politics Essay

How The Globalization Has Been Influenced Politics striveQuestion What factors have shaped the processes of sphericisation? Discuss to what extent the humanness rescue is becoming slight or more(prenominal) planetaryised as a consequence of the global recession started in 2008?draw the views of radicals, sceptics and pragmatics regarding the factors promotingthe conception of frugal globalisation as a reinvigorated phenomenonDIFFERENT FROM inter issueization, westernization, lib agelism or cultural convergence.It should further addressto what extent such factors have been shaped by the economic crisisAND what are the consequences for the globalising world economy.Key authors HIRST THOMPSON,sCHOLTE (BOTH IN THE see PACKAGE.)OHMAEDICKENIntroduction In the last decade, globalisation has been much all over the news. But despite its prominence, globalization is viewed as a highly complex process difficult to define.Essay divided in 3 parts Introduction 250 dustupThe fact ors that have shaped the economic globalization 1000 wordsThe globalization debate 900 wordsHow the globalization has been influenced by the economic crisis and the consequences on the world economy 1000 wordsConclusion 150 wordsIndeed, it a topic that is discussed by many authors who strongly dis mate round its significance.Impossible to define.I will present the nature and the significance of these processes. (prod, finance, conduct)Globalization is transforming the ways in which nations movein the last few decades inter topic slyness and ware has bugger off increasingly globalised and corporate activeness has diversified and multipliedNot lonesome(prenominal) globalization is very unfeigned, but it consequences can be tangle everywhere.The global market place is more developed than in the 60s and 70s and is in dissimilar to national borders.Nations have befogged most of their sovereignty and politicians have lost most of their capability to influence events.The era of nation put in is overTHE FACTORS THAT HAVE SHAPED THE PROCESSES OF ECONOMIC GLOBALIZATION consort to Castells, economic globalization can be mainly conceived as three different sets of factors that have shaped the processes of globalization, encompassing the changes that took place at a global train over the last few decades the globalization of production, the globalization of finance and the globalization of hand (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 improver of Foreign Direct Investment, an increased section of transnational corporations in the world economy and finally a growth of long distance production interlocking (Prasad, 2006).The massive increase of FDI jibe to Razin and Sadka, the foreign select enthronisation (FDI) can be defined as an investment involvi ng a long-term relationship and reflecting a lasting interest and control of a resident entity in the source country (foreign direct investment or parent firm) in the host country. (Razin and Sadka, 2007). As menti whizzd by Castells, since 1960, the FDI was more and more concentrated in industrialized 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 trio World are becoming important destinations. For example, transnational corporations investments in transition 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 in that respect is globalization of production because the economic globalization is reorienting the destinations of FDI.The role of transnational corporations in the world economyTra nsnational corporations kindred Airbus, Samsung, Nike or Apple are companies who have their headquarters in one country (mainly concentrated in industrialized countries) and a matter of subsidiaries in more than one foreign country. They key the most important vehicle for FDI, exceeding more or lesstimes 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 head for the hills to become significant vehicles for FDI (Held Mc Grew, 2003). Consequently, the internationalization and the growing importance of these multinational 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 t bar to disperse their production networks internationally which re presents a fundamental difference from earlier, when the production processes were mainly organized at heart national frontiers (Gereffi and Korzeniewicz, 1994). Those new global commodity chains keep evolving by dint of 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 glo balization of production have influenced the world the economy while 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 nonable fluctuations in the nature of the global financial organization. Indeed, the financial design that has been established by the Bretton wood understanding founded a system of fixed exchange rates across national currencies (Bordo and Eichengreen, 1993). Though, after the snap of this system in the 1970s, the global financial system has progressively become globalized and presented a rising aspiration toward global integration of financial markets and dome groundbreaking financial instruments.Therefore, nowadays businesses increasingly work in a world of globally combine capital markets with developments in a particular part of the major planet rapidly spreading their effects on a g lobal level.Moreover, the globalization of finance has resulted in a surprising explosion of currency trading isolated from transnational occupation.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 governing body 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 totally 20 per cent (Castells, 2000).Changes in geographical patterns of in ternational tradeAs the manufactured products represent such a great part of the international trade, it is without a question that industrialized economies lead the international trade. However, as a result of the globalization of production and finance, the international trade t deceases to be increasingly geographically diversified. Indeed, as the exports between 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 outlet 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 first section of this news report has explained the factors that have sh aped 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 transformationalists. Those three schools attempted to explain and understand the recent concept that is globalization, and more precisely, economic globalization.The hyperglobalizersAccording to Ohmae, globalization could be defined as a new era of human 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 branch of this school of thought, the neoliberals, sees the globalization as the emergence of a single global market. Therefore, the hyperglobalizers th ink that the economic globalization will bring the denationalisation of economies 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 instruments of governance (Reich, 1991). As mentioned by odd the virtual forces of world market are more important than national governments and their authority is decreasing (Strange, 1996).inside the hyperglobalist movement, it exists a divergence between the neoliberals and the neo-Marxists as the neoliberals see the individual autonomy as a exuberate 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 piece as an anachronism it has been replaced by a division of labour.Moreover, the hyperglobalizers see the Nation 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 manikin 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 as sociated with a faultlessly integrated global market. According 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 i mpulse for the liberalization of national economies.Some others 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 explore to expose 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 Next 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 gl obalization different from industrialization westernization liberalism according to the TRANSFORMATIONALISTS. cultural convergenceAuthors Giddens Globalization is real and its consequences can be felt everywhereLevel of world trade today is much higher(prenominal) 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 either the sceptics or the radicals have properly silent 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, remote and far away from the individual..II) DISCUSSION O N GLOBALIZATION AND ECONOMIC CRISIShttps//vip2.uvm.edu/sseguino/pdf/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