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M1L2 GLobal Economy

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13 views18 pages

M1L2 GLobal Economy

Uploaded by

Tyron Custodio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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GLOBAL ECONOMY

ECONOMIC GLOBALIZATION

an increasing interdependence of world


economies as a result of the growing scale
of cross-border trade of commodities and
services, the flow of international capital,
and wide and rapid spread of technologies
The Actors that Facilitate
Economic Globalization
Formation and Role of Networks

referring to the formation of an international


organization such as APEC, ASEAN, UN, WTO,
etc. and global business organization
What Makes Global Networks
Possible?

Information and Technology


Formation and Role of ELITES

ELITE
• (they are superior to the rest
of their group) or defined
materially they possess more
of a given asset, whether
material or symbolic, than
others.

• exercise significant power


concerning global processes
and more power than non-
elites
Formation and Role of ELITES

Elites in the concept of globalization refer to the global


corporate elite, in which they form transnational
interlocking directorates, mostly coming from the “rich
countries”.
Formation and Role of Institution

 Institutions gave authority and direction to the forms of


morality that guided individual life and thus maintained
the order of society.
GLOBAL
ECONOMIC
SYSTEM FAMOUS
THEORISTS
CAPITALISM

 economic system in which private individuals or


business owns capital goods.
ADAM SMITH

 Author of The Theory of


Moral Sentiments

 proposed the idea of


“invisible hand” the tendency
of free markets to regulate
themselves employing
competition, supply, demand,
and self-interest
KARL MARX
 argues that society is composed of two main classes:

 Proletariat who do not own or


 Capitalist Bourgeoisie
have any claim to the means
are the business owners of production, the finished
who organize the process products they worked on, or
of production and who any of the profits generated
own the means of from sales of those products,
laborers work only in return for
production
a money wage
THEORIES OF
GLOBALIZATION
WORLD SYSTEM THEORY

 Immanuel Wallerstein argues that the modern


world system emerged as early as the 1500s
through a series of economic transitions and now
connects all countries through a single division of
labor.
IMPORTANT POINTS OF
WORLD SYSTEM THEORY
according to Wallerstain:

 core countries in the developed world extract labor


and raw materials from peripheral ones

 Capital accumulates through an ever-expanding


network of trade routes, property rights, and labor
agreements that simultaneously connect the world
while reinforcing its inequalities

 adheres the idea that capitalism has created a


global enterprise that swept the 19th century
leading to the present time.
Characteristics of World Paradigm

Core Nations

• most modernized nations, having diversified economies


and stable internal politics.

• Regarded as powerful and developed centers of the


system.

• Comprises of Western Europe, North America, and


Japan.
Characteristics of World Paradigm

Peripheral Nation

• those nations that are forced to


specialized in the export of
unprocessed raw materials and food to
the core nations.

• This also refers to regions that have


been forcibly subordinated to the core
through colonialism or other means.

• It includes Latin America, Africa, Asia,


the Middle East, and Eastern Europe.
Characteristics of World Paradigm

Semi-Peripheral Nation

• that fall in between the core and


peripheral nations, being most
industrialized than the peripheral but
less industrialized in than of the core.

• States and regions that were previously


in the core and are moving down the
hierarchy, or those that were previously
in the periphery and are moving up.

• This includes countries like, Argentina,


China India, Brazil, Mexico, Indonesia,
and Iran

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