International Economic Organizations and Globalization
International Economic Organizations
Powers within International Economic Organizations
Legislative Power
This power is centralized in the body representing member states. Decisions are made through voting or unanimous agreement. Resolutions can be either enforceable or non-enforceable.
Executive Power
This power ensures the organization’s functionality. Members are selected based on professional qualifications, often considering geographical diversity. They do not represent any specific state.
Judicial Power
This body settles disputes between members and the organization’s bodies. Some organizations have mechanisms for resolving inter-state disputes.
Globalization
Definition
Globalization encompasses the changes transforming relationships between countries and people in the international system.
Key Concepts
- Internationalization: Increased cross-border interactions and interdependence between countries.
- Liberalization: Removing government restrictions on international movements to create an open world economy.
- Universalization: The global spread of products, objects, and experiences.
- Westernization: The spread of Western cultural standards across the globe.
- Deterritorialization: The diminishing importance of places, distances, and territorial borders.
Consequences of Globalization
Technological Advancements
Rapid evolution in communication and information technologies has led to:
- Exponentially decreasing costs.
- Simultaneous global availability.
- Modern technologies shaping utility functions.
Open Economies
Countries have opened their economies, with many adopting free-market models.
Liberalization of Capital Flows
Since the 1990s, many countries, particularly emerging economies, have embraced the liberalization of capital flows.
Liberalization of Developing Economies
Liberalization varies across developing countries in terms of situations and modalities.
Key Transformations
Transformations in International Trade
Free trade remains more of an ideal than a reality, with economic conflicts persisting between countries. Technological competence is increasingly crucial in international economic relations.
Changes in the International Monetary System
The debate over fixed vs. flexible exchange rates has become less important. The focus now lies on international coordination to address threats from speculative capital.
Globalization of Financial Capital
The globalization of financial capital poses a new threat due to the constant flow of speculative capital between countries.
Increased Competition
Companies, industries, regions, and nations must compete at the international level.
Global Competence and Social Problems
Promoting research, development, and innovation can lead to technological advancements that may cause unemployment.