Economic Globalization: Impact and Trends
What is Meant by Globalization?
Economic globalization is the creation of a global market that abolishes all trade barriers to allow the free movement of capital: financial, commercial, and productive. Globalization, then, would be like the stage of completion of the historical process expansion of capitalism, with two objectives: the free mobility of capital and the creation of a single global market.
What Comprises the Processes of Globalization from a Microeconomic Approach?
- The global integration of national and regional markets.
- The commodification of manufacturing.
- Growing global competition.
What is it and What Aspects Involve the Integration of Regional Markets?
Division consists of the production of parts and components between companies and regions that involve the internationalization of production and distribution processes. Countries specialize in the components that can be competitive, and it is advisable not to engage in those where you cannot have a comparative advantage because it would waste time and resources that can be used on more important priorities.
What is the Commercialization of Manufacturing?
Giving more importance to the marketing of the product than to the production itself.
What is the Growing Worldwide Competition?
In most businesses, competitiveness is achieved through strategies that leverage the comparative advantages of each nation.
Mention Macroeconomic Processes Including Globalization
- The international demand for goods and services grew at a rate much higher than domestic demand or the national market, creating additional pressure for the internationalization of economies.
- The service sector growth worldwide, changing the traditional structure of production.
- Primary products and raw materials have declined in relative importance in world production.
- The development of technology represents the essence of globalization, becoming the cornerstone of global economic competitiveness.
- Production processes are shared across national borders.
- Labor represents a diminishing relative weight in the production of industrial goods, with the concomitant reduction in employment in that sector.
- The global economy has made three major markets, financial centers, and centers of technological development represented by Europe, America, and Japan.
- The global economic development is a core feature where comparative advantages are crucial to the success of companies, industries, and therefore countries.
From When Does the Globalization Process Openly Express Itself?
From the 1990s of the last century (XX).
What are the Logical and Historical Processes that Prepare Globalization?
Logical, as the tendency of any business to expand the market, to seek sources of raw materials to distribution sites, branches, or subsidiaries. In short, by nature, businesses tend to exceed the narrow boundaries that mark special interests, and more if regimes are threatened by progress, politics, humanities, and social considerations.
Historical regional unification aiming to eliminate barriers to distribution, trade, etc., that occurred prior to the emergence of nations. The imposition of mercantilist policies by England on other nations is also part of the internationalization process. Here one must ask, what is it that gives a nation the ability to impose its will on others? What is its power based on? Another highlight is given in the last third of the nineteenth century with the advent of imperialism and the quest for good or poor sources of raw materials and investment areas, and the struggle for the division of the world to strengthen the subordination, the subjugation of weaker nations, and colonialism. Suffice it to say that competition for these factors led to the first two world wars of the twentieth century. Finally, in the period after the 2nd World War, internationalization progressed at much more rapid steps, starting with the most developed nations under the hegemony of the U.S.
What are the Central Tenets of Neoliberal Economic Policy? Why Does this Policy Accompany the Globalization Process?
Free trade, market operator, i.e., the free play of market forces rather than direct state intervention in the economic sphere through investment or creation of state enterprises. Applying the same principle to the workforce, which should also cover the free interplay of supply and demand, minimize or distort the trade unions that are also considered monopolies that impose certain requirements as collective bargaining and payments through indirect benefits, which should free the workers so that they negotiate their salaries individually, subject to supply and demand for workers, etc.
These policies come with globalization because they better permit compliance with the will of multinational corporations. A weak state in each country will not submit to national interests to multinational corporations. A state that ensures the company complies with the principles of the market nationally and internationally is what is good for these companies.
From the Point of View of World Domination, How Have Changes in Dominant and Hegemonic Nations Been Made Since the Eighteenth Century?
The first power was England that emerged in the eighteenth century and lasted until at least the 1st World War. Then the EU emerges as a world power in the capitalist countries since World War 2, even if it had competition from the USSR, also formed into a world power after the war, competition which is called the Cold War, which ended with the fall of the Berlin Wall and the collapse of the USSR in 1989. Thereafter and at least 25 years later, there was a unipolar world under the leadership of the U.S. Since 2000, there has been a contest of interests from around the world in which various powers form a shared leadership in which the U.S. and Japan are outlined.
What is the Current Trend Regarding Hegemony, Domination, and Control of Power?
The possibility that Japan achieved hegemony, to consolidate the U.S., but China is also emerging as a dominant power in this century.
Why is it Said that Regionalization is Not Opposed to Globalization?
It was not opposed and also develops and strengthens, it allows the unification of all types of resources that facilitate the imposition of the views of the strongest in the forums and international conferences. They are the poles of development that have the resources to irradiate the penetration and the globalization of production relations they represent. It is not known to the ability of a dispersed and fragmented.
Where and When Does Capitalism, Which is the Basis of Globalization, and What We Now Call Globalization, Develop?
In Europe, the Italian cities from the XIV century, corresponding to the transition from feudalism to capitalism. As pregnancy centers moved from one place to another depending on how favorable or not to develop business, capitalism is brewing between the XIV to XVII and the taking of Constantinople by the Turks, step-century trade XIV, forced the migration of commercial capitalism to the cities of northern Europe, such as Flanders in the Netherlands.
How do Regionalism and the Trend Toward Internationalization of Business Manifest at the Time of Emergence of Capitalism?
In a growing political unification and economic integration between regions then unite to form one country.
The kingdoms of Castile and Aragon regions of Spain today, the first dominated the territorial space of the whole country uniting under rules of convenience, the other adjacent regions that form modern Spain and then deployed go beyond the national space to other around the world.
Of course, the fact of unification is present the concentration of economic, financial, and military which facilitated the organization of various projects, among which were: the search for new trade routes, territories, and settlement followers of the religion.
How was Internationalization Expressed at the End of the Nineteenth and Early Twentieth Centuries?
With the transformation of capitalism in its highest stage, imperialism is based on the emergence of monopolies and the search for new territories, areas of investment, and sources of raw materials, giving a competition and struggle for the division of the world by large powers and the development of preparations for World War 1.
How were Monopolies and Cartels Formed During this Time?
By merging and integration of large amounts of capital, formerly handled individually, and the increasing separation of direct administration by the owner.
What is the Driving Force of Capitalism in the Twentieth Century?
Mass production from its diffusion and development.
On What Basis was the First Historical Formation of Multinational Corporations and What Facilitated its Implementation in Latin America?
In the decision of the central administration of the same to avoid undermining their monopoly positions and balance in their places of origin, that is not further invest huge amounts of financial funds in their own countries and if directed to the outside world through direct investment and international loans.
In the case of Latin America, received with some exceptions, almost all funds from the EU and facilitated the Monroe Doctrine, which says America for Americans.
Why was a Global Currency Necessary After 1913?
For the needs of international trade flow, which had achieved a transaction volume of countries involved and never seen before.
What Monetary System was in Force Between 1870 and 1913?
The gold standard.
Why were Antitrust Laws Enacted in the U.S.?
- Because they undermined the principle of free competition based on price, becoming worse for the market.
- Because their power even allowed to divert and subvert state power and became a threat to economic stability.
What Consequences Did the Absence of Antitrust Laws in Europe Have?
- That is becoming an obstacle to social mobility, strengthening the social rigidity, the strengthening of regional disintegration, and trends of migration from Europe to America.
- A fierce struggle for the economic distribution that eventually led to the 1st World War.
What Consequences Brought Foreign Investment from Industrialized Countries to Export Activities of Raw Materials in Underdeveloped Countries?
- Promote the formation of a dual economy with enclaves or poles of development aimed at meeting the needs of raw materials from countries of origin next to the traditional and backward economy of those countries. What they were missing the backward and forward linkages with the backward areas.
- Thus, it, favoring the concentration of capital in the poles, at a time in their home countries had already extended the benefits of raising capital to start their own regions which were not given the push for integration regional but rather to the needs of these countries, building railways, ports, and other infrastructure to provide the raw materials demanded their industrial centers.
In What Times of the Twentieth Century are There Setbacks in the Process of Internationalization of Large Firms in Highly Developed Countries?
When present crisis trend favoring the withdrawal of capitalism in the countries or areas where flooding has left her. These important events were:
- The First World War
- After manifested since the Great Depression in 1929 (and that some countries had begun to suffer from at least three years before and Mexico).
- During the period that lasted for the 2nd World War.
What Consequences for Latin America Brings the Neglect of Foreign Companies to Their Demand for the 2nd World War?
Firstly, the lack or shortage of imported products and therefore the stimulus for a sudden and sustained process of industrialization based on import substitution, bringing with it the development of a major industrial infrastructure and the emergence of a group of capitalists whose prosperity depended on its ability to meet domestic demand. We count on a protectionist policy and the state’s industrial development.
What Does Deindustrialization Mean and How Has it Been a Reality in the U.S.?
The disappearance of industries as a result of intense competition, and thus a large amount of jobs, causing the relative decline in the national economy as a whole industrial sector, and whose place they will occupy utilities gradually, becoming in the primary sector.
In the United States, it has been mainly with the removal of industrial enterprises in their traditional places to other parts of the world, taking advantage of the many advantages offered by host countries as tax exemptions, facilities for export and import as well as low wages persist for labor, and in many cases by the disappearance of social benefits and the disappearance of neutralizing or protective labor laws.
How Does the World Economy Currently Operate?
It is no longer the sum of the global economy but a vast network of industry relationships, commercial, financial, and technology with its own dynamics requiring that the conditions for maintaining and developing dynamic, which involves negotiation and pressure and on the powers of the world. Its components are technological innovation, the internationalization of production and distribution, the creation of new comparative advantages, the growth of the services sector, the importance of skilled employment, and falling relative prices of primary products.
How Does Technological Innovation Encourage Globalization?
- By allowing significant changes in production methods base the new type of competition.
- Generate a new international division of labor by creating new comparative advantages at a startling rate and enables and facilitates the production is internationalized, that is, breaking it regardless of country or economic sector.
What Other Factors Facilitate Globalization?
The efficient use of infrastructure and production factors, educational level, and training of human resources, and the advent of new international business linkages.
What Determines the Success Developing Countries Reach in a Situation Where Labor and Raw Materials Occupy an Increasingly Less Important in the Cost of Products from Developed Countries?
Comparative advantages they obtain in the field of innovation or at least in technological adaptation and the creation of a strong knowledge infrastructure, education, and technological training.
Explain How the EU Has Acted to Promote Globalization
Multilaterally or unilaterally, i.e., in the first case together and measured using all sorts of economic, political, diplomatic, and even veiled threats and overt military court when they have called the conditions or circumstances. For the second case, when all other means have failed, resorted to military intervention and invasion, particularly against people and states previously weak or weakened due to its intelligence work.
Ultimately, What Does the EU Pursue with its Multilateral or Unilateral Measures?
Impose its will encourage the arrival of governments friendly to the interests of large multinational companies.
Act strategically to change the world in the image and likeness of their old assumptions and the prevailing system messianic in the same U.S.
Why is the End of the Cold War Considered One of the Positive Factors of Globalization?
Why there is no contention with the extension of the capitalist system represented by the USSR and the socialist bloc. The imposition of economic policy measures favorable to the interests of multinationals, simply the system came to be seen as the only possible alternative development to the widespread image of what socialism was supposed to mean: lack of freedom and authoritarianism. In most poor countries and for the working class in developed and emerging nations spread the idea of despair and lack of alternatives, the only way the acceptance of development costs under the direction of globalization.
Why is the Crisis of the 1970s Considered a Milestone in the History of the Globalization Wave?
The falling rate of profits in highly developed countries themselves pulled over to the big companies to seek new horizons where possible to reduce wage costs, raw materials, taxes, etc. And this became possible in the countries of low and intermediate capital-hungry developed and employment, thereby shifting part of the process of production to those countries, but to sell the production in high-income countries is in their own countries of origin or in other highly developed field.
Mention Antiglobalization Movements Created from the 2000s of the Last Century
Environmentalists, trade unionists, anarchists, affected farmers with free trade, consumers affected by poor quality or negative effects of some imported products; conservative old environment and do not accept the internationalization including labor, civil, and others.
Why Does the Nation-State Lose Power in Globalization?
Because the fundamental economic decisions and even policies are taking the decision centers of multinational companies, international banks, and the IMF and the World Bank, and even by the governments of the countries of origin of such companies. The decisions are based on business logic rather than people’s needs or national problems that may correspond to countries with no or little influence regional or international.
Actually, time is that the decisions of what will or will not impose elite groups worldwide, such as the Bilderberg group, who act as if their actions were innocent and as if its vast economic power not insufficient to determine what should or should not be done. They are deciding where the money goes as it should be spent and that there must be a pledge when rendered.
What Currently Observed Phenomena are Global and Show the Increasing Loss of Governability in Several Countries?
Deterioration and failure of the vast royal National State that are gradually decaying areas economic, poverty, and civil war as Haiti.
Considerable erosion of the nation-state in countries that suffered significant economic and social decline as Argentina.
Strong expansion of global criminal networks.
Development of new types of authoritarian states with internal consensus.
Expansion emergence of terrorism and Islamic fundamentalist movement as a major anti-Western.
What Does the Term ‘Fragmegration’ Indicate and What Does it Manifest in the Context of Globalization?
The effects are simultaneously integration and fragmentation of contemporary social life and shows contradictory trends from the potential opportunities and unexpected effects that have emerged with the growing consolidation of the interrelationship of economic ties, political and cultural globalization brings.
What Requires Governance in Globalization and What Features Require Political Actors Who Aspire to Build or Rebuild Global Governance?
Democratic vision, cosmopolitan, and realistic world politics.
Politics in the era of globalization presupposes attributes of democracy and the rule of law, global governance is incompatible with the values and authoritarian practices.
Without obedience to law and without accountability, there will be no opportunity for those who operate in a global system from various cultures and social dimensions of life and state to establish routines and procedures capable of resolving problems and conflicts.
What Effects Did the Marginalization of National and Multinational Capital in the Amazon Jungle of Peru Have?
Upon entering the traditional crisis livelihood of farmers in the region, these were moved to the unregulated exploitation of valuable timber from the forest, leading to excessive logging and the disappearance of these species. That is, people went from living a productive activity to become the parasites and predators of nature, accelerating environmental degradation. (The example is that of Manuel Flores Calloquispe).