International Political Economy and Globalization
1- Exercise your reasoning skills by using clear points and illustrations from Global Trade and Economy Industries, give two or more reasons which justify the definitions of Globalization. Use a reasonable meaning regardless of its rigidity and typical nature.
Globalization refers to the growing international dependency of worldwide nations and organizations as a result of cross-border trading of amenities, cultures, technological concepts as well as information. (Mingst and Arreguin 2011. 161)
Furthermore, the basic principle of globalization originates from the comparative advantage model. This model is of the notion that nations that are renowned globally to produce certain commodities are at an advantage of exporting those commodities to nations that are not capable of generating such goods. On the other hand, the less capable nation is also able to trade what it is best able to produce to the former nations. This results in trade exchanges between nations as there is not one country which can produce everything on its own. In addition to this, the existence of diverse assets in each country provides an advantage in all the involved nations. (Sciubba, 2011. 80)
However, practically all elements of this present world has been influenced by globalization. For instance, a Federal Reserve Bank of San Francisco report of 2010 indicated that nearly 35.6% of the garments and footwear that are retailed in the United States originated from China. This is in comparison to barely the 3.4 % of those items that were locally made in the United States. This form of trade is shown to have advantages such as the increase in Foreign Direct Investment (FDI) compared to global trading. This increase enhances technological exchange, business reformations as well as the expansion of international corporations. (Mingst and Arreguin 2011. 165)
Moreover, globalization results in enhanced competition which facilitates the growth of novel technology. The increase in FDI streamlines business operations thus enhancing the trade and industry outcomes. Not only that, but globalization also facilitates the realization of cost advantages which minimize business expenses thus resulting in huge profit margins among global companies. The downside of this is that local small scale enterprises tend to suffer economically. (Mingst and Arreguin 2011....
The European Union also has its own version for corporate social responsibility. (Landau, 85) Thus the U.S. polity was forced to adapt international opinions and legislate both for the external and internal aspects of its economy. Human rights, labor laws and a host of international issues like global warming and the use of chemicals were all reflected in amendments of the local laws while some of the issues like
Investment in the "global economy" remains a domestic matter: The fact is, the total amount of the world's capital formation that is generated from foreign direct investment (FDI) has been less than 10% for the last three years for which data are available (2003-2005). In other words, more than 90% of the fixed investment around the world is still domestic. And though merger waves can push the ratio higher, it
They are used to the existing state-based system of commercial regulation, and there are several reasons why they might wish to maintain it. The advantage of using this system is that the MNCs know the system well, and the system uses effective tools for managing and currently provides them with significant leverage. They have proved adept at using leverage: globalization has forced firms to raise efficiency and adopt cost-minimization
Marxist political economy looked more like critics on classical political economy proposed by liberalists, yet it didn't give any definite solution to the problem of political regulation of economics. Socialist theories of political economics which were derived from Marxist concept failed to effectively function on the territory of the certain state, and the economical situation in such countries as ex-USSR, Cuba, Vietnam and North Korea prove it perfectly. Now it
International Law and International Political Economy in South America The modern world is characterized by considerable political, social, economic and environmental changes. These changes are attributable to various factors including globalization, increased urbanization, and climate changes. Every region across the globe will continually be affected by these changes. According to a publication by the Office of the Director of National Intelligence (n.d.), many societies worldwide will be unable to achieve complete
" (S. M. Lele, Sustainable Development" A Critical Review, p. 611) The main objectives of the sustainable development are to: revive growth, change the quality of growth, satisfy the basic needs for jobs and subsidiary services, ensure a sustainable level of population, preserve the resources, reorient technology and control risk, consider both economy and environment in the decision making process, and reorient international economic relationships. (S. M. Lele, Sustainable Development" A
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