the global

economy
At the end of this lesson, you should be
able to:
1. define economic globalization;
2. identify the actors that facilitate
economic globalization;
3. define the modern world system; and
4. articulate a stance on global economic
integration.
Economic globalization
is the expansion of national economies, the global market driven by modern
technologies and institutional set ups that promote faster and easier flow of
goods and capital (Sugden and Wilson, 2005).
Global economy
denotes that the economies of various countries are more interconnected from
extraction, production, distribution, consumption, to disposal of goods and
services (Carfi and Schilirò, 2018).
International financial institutions
are global financial institutions that support a country's economic growth
through support (i.e., loans, technical assistance) to governments and now
other private sectors (Wood, 2019).
International Monetary Fund
is an international organization with 183 member countries that promotes
international monetary cooperation and exchange stability to foster economic
growth and high employment and to provide short-term financial assistance to
countries to help ease balance of payments adjustments (IMF, 2019).
Global civil society
is a system of nongovernment institutions that operate across
geographical borders and organize and mobilize for a common issue or
cause.
Global corporation
is an "enterprise that engages in activities which add value
(manufacturing, extraction, services, marketing, etc) in more than one
country" .
World system
is based on the theory of Wallerstein that recognizes that social and
economic change is not only endogenous to a county, but is affected by its
interaction to exogenous institutions, thus the focus on world-systems.
Economic integration
is a process of combining or increasing the interconnectivity of national
economies to the regional or global economies
INTRODUCTION
As discussed in the earlier section, central to the
discussion about globalization is its economic
dimension. The phenomenon of economic
globalization includes greater integration of
economic activities, products, and systems across
the world. As Szentes (2003:69) argues,
globalization in economic terms extends economic
projects and relations transnationally and promotes
economic interdependencies among different
countries.
It is important to note that economic globalization
goes, beyond internationalization.Economic
globalization involves the integration of functions
and processes of economic activities (Dicken,
2004). This means that economic integration
requires not just having an international consumer
or exporting goods from one country to another,
but also involves creating institutions for market
integration and globalization.
DEFINITION OF ECONOMIC GLOBALIZATION

Most of the definitions of globalization centers on its

economic dimensions. Economic globalization is driven
by the "growing scale of cross-border trade of
commodities and services" Critical to economic
globalization is global economic integration. Economic
integration means that separate production
operations are functionally related to each other and
form a unified product or service. This requires
efficient management of economic operations from
different areas in the world. In current times, this is
made possible by innovations in transport logistics,
modernization of communication and transport
systems, policies supporting integration of different
process along the globe, among others.
The various definitions of the economic globalization focus on
increasing economic trade interrelations among countries. This is
governed by neoliberal principles with the role of the market as
a central driver of economic activities, with less government
interventions. Economic globalization entails global industrial
restructuring and readjustments where developed countries play
a dominant role.

However, the process of global economic integration is not a

modern phenomenon. The voyages of earlier explorers including
the formation of empire (i.e., Roman empire) were critical in
intercontinental trade and were also a precursor of modern
economic globalization. Chinese, and even earlier, trades in Asia
also serve as first-forms of economic expansion and later
integration.
Gills and Thompson (2006: 1) argues that the globalization
processes "have been ongoing ever since Homo sapiens began
migrating from the African continent ultimately to populate the
rest of the world." Explorations in earlier times tend to focus on
a relatively smaller target of commodities of high value like
spices, tea, gold, or other precious metals. The difference now
is the extent and reach of economic globalization, restructuring
of economic systems, and the dominant influence of the private
sector in the global economy
Who are the Actors that Facilitate Economic Globalization?
Globalization has opened the doors for other non-state
authority and actors in driving economic globalization. Non-
state actors include international economic organizations,
private sector led by multinational companies, central banks,
and civil society.
First are international economic organizations such as the
International and Development (OECD). These organizations are
critical in developing and Monetary Fund (IMF), World Bank,
and Organization for Economic Cooperation trade and
development discussions among various states. Another
example are pushing for neoliberal policies among different
countries. They also help facilitate and North American Free
Trade Agreement (NAFTA). These organizations promote
regional organizations such as the Association of Southeast
Asian Nations (ASEAN) regional agreements and standards
that facilitate better trade and exchange of knowledge, human
resources, and regional cooperation.
Second are multinational companies (MNCs), which are considered
to be the main carriers of economic globalization (Shangquan,
2000:2). In 1996, there were 44,000 MNCs in the world with
280,000 overseas subsidiaries and branch offices (ibid). In 2006,
there were 88,000 MNCs identified (UNCTAD, 2007). In earlier
times, trade companies such as the Dutch and British East India,
Muscovy Company, Royal African Company, and Hudson Bay
Company were precursors of the modern day MNCs (Hirst &
Thompson, 2002). MNCS started to emerge during World War II
when US industrial production increased by 44 percent (Strange,
1996). Other prime movers of economic globalization are central
banks. They are considered one of the most powerful institutions in
the world economy since they can lead economic development, and
some authors contend that central bank governors are more
influential in their own national economy than some politicians
(Shangquan, 2000: 280).
Lastly is the global civil society as a major driver of economic
globalization. The global civil society has made its mark in
global development arena particularly during the UN
Conference on Environment and Development in 1992 (Keane,
2003). Global civil society seen as either composed of
individuals or groups of individuals disadvantaged by the
effects of the globalization of the world economy, they
protest and seek alternatives while on the other hand, global
social movement constituting a basis for an alternative to a
new world order (Gherghel, n.d.). Part of the global civil
society Networks (TAN), networks which are are
Transnational Advocacy ideas, and norms, and they often
involve individuals advocating policy changes that cannot be
easily linked to a rationalis
THANK YOU

HARVEY GRAYDA
AMANCIO GIRAY lll