International Political economy in an age of globalization

In a very important moment of the economy, the private sector and industries became very
important for the prosperity and develop of the nations. In past decades, the political issues
were the engine of the transformations, but today the corporations play a primary role in the
economy and the politics that guides the world. That’s why the private companies with the
worldwide leaders promote some International political economy agenda in order to
provide the rules and waybills.

In One hand, the powerful economies support many of the issues and initiatives that the
globalization promote in relation with the political economy, arguing that the dynamic of
the economy will benefit more people in the future but some of the results show than social
inequity and poverty are the result of the liberalization and globalization processes. But is
important to notice, that the technological advances of the globalization focus on the
political and economic progress are the key of the structural changes that are required to
promote sustainable growth for the population of the world.

On the other hand, the non-powerful or developing countries, promote a different agenda in
terms of political economy due of the need to focus on local issues and regional
variabilities, that are not adjusted to the globalization rules or international political
economy guidance. That’s why there are many points of view that are focused on promote
develop in terms of social and local transformations and not in macroeconomic politics
based on individual interest.

Finally, its undeniable the influence of globalization now a day in terms of political and
economic issues. That’s why it’s important to stand out the benefits of the globalization
process in the world but also to pay attention to the collateral damage of this in the
international agenda, traduced in inequality for a very important percentage of the society.
Promote International politics that are adaptable to each particular situation of every nation
is very important to start making changes in the way wealth is distributed.
 Regionalism and International Affairs

One of the most important issues of the globalization process in the world is the
international thinking and the cultural transformation of the nation due of the foreign
influence. With the opening of barriers and the spreading of information, many of local
cultures are changing into global culture. The importance of enhance this regionalism and
combined with international affairs are key of maintaining the local culture intact.

The influence of foreign culture and behaviors in International affairs is very important to
know different points of view, intercultural interactions and ways of promote local
industries into the world. Only by the use of information and adapt every situation to the
cultural behavior of every region is one of the main benefits of the international influence
of a unique globalization process.

Another point of view express that the globalization and internationalization of the
economy, politics and cultural issues of the world, damage the local behavior and the losing
of identity is one of the consequences of promoting this process. The local costumes and
ways of communication are starting to lose local identity and acquire international
behaviors in terms of cultural issues and idiosyncrasy.

Only by combining the influence of international affairs and culture with local and regional
behaviors, the globalization process will be respectful for every nation identity and social
interaction without losing sense of belonging. The use of the information in an appropriate
way is also a key issue to support the idea of using the benefits of international influence
with regionalism and local culture.
 Global Trade and Global Finance

An international economy that influences every inch of every nation in the world is related
with global trade and global finance. Corporations are expanding their activities very fast
and many of their trades, business and finance issues need to be manage with local and
International knowledge, by thinking local and acting global. Dynamism, efficiency, and
adapt to the environment are the tree success keys of global trade and finance.

“Global and local banks support international trade through a wide range of products that
help their customers manage their international payments and associated risks, and provide
needed working capital. The term “trade finance” is generally reserved for bank products
that are specifically linked to underlying international trade transactions (exports or
imports)” 1.
The growth of this kind of activities in the past two decades’ remarks a new way of making
business and manage cash instruments in the global market, in order to be sustainable and
invest earnings in smart options.

Nevertheless, is important to stablish some new rules of distribute wealth in the society,
because this new mechanism of doing global trades and global finance benefits only the 1%
of the population that increase their assets every year no matter what the global situation is.
This balance is one of the elements that should be analyzed for future operations and the
impact of global trade in the prosperity of the nations.

In the future, there is no wealth and no money that would repair the collateral damage of
the global trades and global finance instruments. Its transcendent to focus new politics that
protects the local industries, the minor entrepreneurs, and make some balance between the
powerful and prosper corporations and the distribution of opportunities and sustainable
growth.

1
Bank of International settlements. Committee on the Global Financial System. Trade finance: developments
and issues. http://www.bis.org/publ/cgfs50.pdf. January of 2014.
Globalization and the transformation political community; globalization and the post-
cold war order.

After world war two in 1945 to 1990, there were only two political and economic models:
capitalism and socialism. For many years, they support their own ideas and the threat of a
war that never exist divide the world in two well differenced ideologies. “Unfortunately,
however, the end of the cold war has only created more instability, more security
challenges and more sources of international conflict. On the other hand, it has also created
extraordinary opportunities for solving many problems resulting from the tension inherent
to a bipolar world system”2.

The existence of a bipolar world system creates different points of view of rejection and
debunking specially for the socialism ideology because is well-known by the society that
the model that govern the economic and political world is the capitalism model. That why
all the rejection of socialism ideas and the environment of public isolation of the
communism block.

There is important to remark that some of the neoliberal politics that promote the capitalism
ideology are no longer beneficial for the society in general. Huge percentages of inequity,
poverty and social problems are the common in most of the regions of the world and that’s
why many capitalism ideas are questioned by many leaders that want to transform the new
world order.

The combination of many socialism and capitalism ideologies, with the best and
remarkable of every system and the respect and tolerances of different idiosyncrasies, is
one of the key issues of success for a globalization process that wants to benefit everybody
in a significant way. Braking paradigms is one of the first steps to transform the world in a
better place to live with opportunities will be for everybody not for a little group of people.

2
Pastusiak, Longin. The New York Times. After the cold war: We need to build a new world order.
http://www.nytimes.com/2004/01/03/opinion/after-the-cold-war-we-need-to-build-a-new-world-
order.html?_r=0.
 Business and Human Rights

The engine of the economy around the world are the worldwide corporations and the
private sector. This is why business after the industrial revolution are key issue for develop,
wealth, job creations and sustainable growth for society. But also there are situations of
poverty, violation of human rights and lack of opportunities for a very important percentage
of the population of the world.

There are documented cases related with violation of human rights and respect for human
dignity are very common, and many well-known corporations are linked with these
violations in poor countries were they pay low salaries and doesn’t promote a decent
environment for work in order to reduce costs in the manufacture of products.

The important issue of the last statement is related with the constant concern of the
companies only in financial results and earnings, always forgetting the wellbeing of the
workers and the human assets. Social responsibility is one element to reduce the impact of
the corporations in the construction of new rules in working environments to protect the
human factor of the companies.

Finally, it’s essential to remark that companies that are concern in the wellbeing of the
collaborators and enhance the human factor are the most profitable in terms of financial
results. The combination of this two elements promote sustainable growth not only for
companies but for the people that compose every corporation or organization.